The Post Office Monthly Income Scheme is one of the most preferred saving instruments for those looking for a steady and risk-free monthly income. Backed by the Government of India, this scheme is especially attractive to retirees, homemakers, and conservative investors who want stable returns without worrying about market fluctuations. With its fixed interest rate and guaranteed payouts every month, the scheme has become a popular choice in both urban and rural areas.
In recent months, a viral claim has circulated widely, suggesting that one can earn ₹22,222 monthly simply by depositing ₹5,55,555 under this scheme. This has sparked curiosity among investors, many of whom want to understand whether this is a realistic earning possibility under POMIS or just another exaggerated figure.
Can You Earn ₹22,222 Monthly from ₹5,55,555 Deposit?
To assess this claim, we need to look at the current interest rate offered by the scheme. As of 2025, the Post Office Monthly Income Scheme offers an annual interest rate of 7.4%, paid out monthly. This means that the monthly interest is calculated based on this annual return, divided evenly across 12 months.
- Annual interest on ₹5,55,555 at 7.4% = ₹41,111 (approx.)
- Monthly income = ₹41,111 ÷ 12 = ₹3,426 (approx.)
Therefore, with a deposit of ₹5,55,555, the monthly return would be around ₹3,426 and not ₹22,222, as claimed in some social media posts. To earn ₹22,222 every month at 7.4% interest, one would need to invest over ₹36 lakh, which is far beyond the maximum limit allowed in POMIS, even under a joint account.
Key Features of Post Office Monthly Income Scheme
| Features | Details |
|---|---|
| Interest Rate | 7.4% per annum (as of 2025), payable monthly |
| Investment Limit (Single) | Minimum: ₹1,000; Maximum: ₹9 lakh |
| Investment Limit (Joint) | Maximum: ₹15 lakh for a joint account (up to 3 holders) |
| Tenure | Fixed for 5 years |
| Premature Withdrawal | Allowed after 1 year with penalties: 2% deduction (1–3 yrs), 1% (3–5 yrs) |
| Tax Benefits | No benefits under Section 80C; interest is taxable; no TDS applied |
| Account Transfer | Allowed across post offices in India |
| Nomination Facility | Available |
| Reinvestment Option | The amount can be reinvested after maturity |
These features show that POMIS is structured more as a conservative income plan rather than a high-return scheme. It is built to support regular monthly inflows and is ideal for those who prefer stability over aggressive wealth growth.
Who Should Consider Investing in POMIS?
POMIS is not designed for high-risk investors or those looking to double their money quickly. Instead, it is most suitable for:
- Retired individuals who rely on a monthly income for daily expenses
- Homemakers who want to park a lump sum securely
- Parents or guardians managing funds for minors
- Individuals seeking safe diversification from equity or market-linked instruments
It’s also a reliable option for senior citizens looking to preserve capital while still earning a steady income.
How to Open a POMIS Account?
Opening a Post Office Monthly Income Scheme account is a straightforward process and can be done at any post office branch in India. Here is a step-by-step explanation:
Step 1: Check Eligibility: Only resident Indians can open a POMIS account. NRIs (Non-Resident Indians) are not eligible. A person aged 10 years and above can open an account, though minors will have their account managed by a guardian.
Step 2: Prepare the Documents: Ensure you have these documents ready before visiting the post office:
- Identity proof: Aadhaar card, PAN card, or Voter ID
- Address proof: Utility bill, passbook, or bank statement
- Passport-sized photograph
- Initial deposit amount (minimum ₹1,000)
Step 3: Visit the Post Office: Head to your nearest India Post branch and request the POMIS account opening form. Fill in the required details carefully.
Step 4: Submit Form and Deposit: Submit the completed form along with the documents and deposit amount. You can deposit using cash, cheque, or a demand draft.
Step 5: Nomination (Optional): You may choose to nominate a family member or dependent who will receive the proceeds in case of the investor’s death.
After processing, the post office will provide an account passbook, and your interest will start accumulating from the date of deposit.
What Happens at the End of 5 Years?
Once the 5-year maturity period is completed, the investor has two options:
- Withdraw the principal amount along with any interest due.
- Reinvest the principal in another POMIS account or shift to another savings scheme.
If the amount is not withdrawn immediately upon maturity, it will earn interest at the rate applicable to the post office savings account (which is usually lower). While POMIS is a secure investment option, it is important to keep the following points in mind:
- The interest earned is added to your total income and is taxable based on your income slab.
- No TDS is deducted by the post office, but you must declare it in your ITR.
- You cannot claim any deductions for the invested amount under Section 80C.
- The scheme does not offer compounding, which means you receive a fixed monthly amount, but it does not grow further.
The Post Office Monthly Income Scheme continues to be a dependable financial product for those seeking a guaranteed and stable monthly income. However, claims such as earning ₹22,222 monthly from a deposit of ₹5,55,555 are misleading and should be verified with actual interest rate calculations. With a 7.4% annual return, the income from POMIS is realistic, safe, and backed by the government, but not magical.
For those who understand its limitations and are looking for regular income rather than wealth creation, POMIS can be a good addition to a diversified financial portfolio. Always ensure your investment aligns with your financial goals, risk appetite, and tax plans.