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Budget 2023-24: The maximum deposit limit for the monthly savings scheme is enhanced from Rs.4.5 lakh to Rs.9 lakh for a single account and from Rs.9 lakh to Rs.15 lakh for a joint account.
Like any nationalised bank, the Post Office has been a trusted place for depositing and transacting with money. This is especially true for the elder generation. A number of saving schemes are offered by branches of the Post Office across the country.
Post Office Monthly Income Scheme (POMIS) is one such scheme where you invest a certain amount and earn a fixed interest every month. As the name suggests, you can invest in this from any post office. In this article, we will cover the following aspects of POMIS.
Post Office offers POMIS among a host of banking products and services, under the purview of the Finance Ministry. Hence, it is highly reliable. It is a low-risk MIS and generates a steady income.
You can invest up to Rs. 9 lakh individually or Rs.15 lakh jointly, and the investment period is 5 years. Capital protection is its primary objective. The interest rate for April-June 2023 is 7.40% per annum, payable monthly.
For instance, Mr Sharma has invested Rs.9 lakh in the post office monthly investment scheme for 5 years. As mentioned above, the interest rate is 7.40% p.a. His monthly interest will be Rs.5,550 for that period. Post-maturity, he can withdraw his deposit, Rs.9 lakh, along with the accumulated interest either from any post office or get it transferred to his savings account via Electronic Clearance Service (ECS). Alternatively, the account can be renewed.
|Maximum Deposit Amount Allowed
|Rs. 9 lakhs
|Joint Account (2 or 3 adults)
|Rs. 15 lakhs
Opening a POMIS account is not as tedious as you think. Instead of imagining long queues and even longer paperwork, please take a look at the step-by-step procedure.
|Time of POMIS withdrawal
|Outcomes of premature withdrawal
|Before completing one year
|Between 1st and 3rd year
|Entire deposit refunded after deducting a 2% penalty
|Between 3rd and 5th year
|Entire corpus refunded with 1% penalty
|Monthly Income Mutual Fund
|Monthly Income Insurance
|Assured income at an annual rate of 7.40%
|Invested in 20:80 equity-debt ratio and hence no guaranteed income
|Monthly annuities (rates vary based on premiums & period)
|Annuity is taxed
|Fixed return rate
|Floating rate as per the market movement
|Low-risk, suitable for the risk-averse
|Suitable for people with a high-risk appetite
|Double benefits of investment & insurance
|Withdrawal permitted after 12 months with penalty
|Exit load applicable if withdrawn before time
|Higher surrender charges as this is a long-term investment
|Limit of Rs. 9 lakhs per account and Rs. 15 lakhs for a shared account
|No investment limit
|No investment limit
POMIS has the flexibility and reliability that appeal to risk-averse investors, albeit with limited tax benefits. If you think, you belong to that category, now is the time to consider starting one.
|POMIS Interest Rate (Per Annum)
|1st October 2023 - 31st December 2023
|1st April 2023 - 30th June 2023
|1st January 2023 - 31st March 2023
|1st October 2022 - 31st December 2022
|1st April 2020 – 30th September 2020
|1st January 2020 – 31st March 2020
|1st October 2019 – 31st December 2019
|1st July 2019 – 30th September 2019
|1st January 2019 – 31st March 2019
|1st October 2018 – 31st December 2018
|1st January 2018 – 30th September 2018
Each joint account holder will have an equal share in each joint account.
In case you don’t withdraw the deposit amount upon maturity, the money will stay in the account and earn a simple interest as per the Post Office Savings Account for a period of two years from the account maturity.
Yes. This is a favourable scheme for senior citizens as they can deposit their life savings in the account and earn interest for their monthly expenses.
In the event of shifting from one city to another, you can easily transfer your POMIS account to the Post Office in the current city at no extra cost.
The maximum deposit limit under POMIS is 9 lakhs for an individual account and 15 lakhs for a joint account.
Yes, nominees can apply for death claim settlement immediately upon the death of the POMIS investor, even if the lock-in period of 5 years is not complete. They can apply for the death claim and get a refund of the investment amount and interest accumulated till death.
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