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 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.4.5 lakh individually or Rs. 9 lakh jointly, and the investment period is 5 years. Capital protection is its primary objective. For the quarter ending 30 September 2021, the interest rate is 6.6% per annum, payable monthly.
For instance, Mr Sharma has invested Rs.4.5 lakh in the post office monthly investment scheme for 5 years. As mentioned above, the interest rate is 6.6% p.a. His monthly income will be Rs.2,475 for that period. Post-maturity, he can withdraw his deposit, Rs.4.5 lakh, either from any post office or get it transferred to his savings account via Electronic Clearance Service. Alternatively, the account can be renewed.
|Account Type||Maximum Deposit Amount Allowed|
|Single Account||Rs.4.5 lakh|
|Joint Account (2 or 3 adults)||Rs.9 lakh|
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||Zero benefits|
|Between 1st and 3rd year||Entire deposit refunded after deducting a 2% penalty|
|Between 3rd and 5th year||Entire corpus refunded with 1% penalty|
|POMIS||Monthly Income Mutual Fund||Monthly Income Insurance|
|Assured income at an annual rate of 6.6%||Invested in 20:80 equity-debt ratio and hence no guaranteed income||Monthly annuities (rates vary based on premiums & period)|
|No TDS||TDS applied||Annuity is taxed|
|Fixed return rate||Floating rate as per the market movement||NA|
|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|Withdrawal permitted after 12 months with penalty||Exit load applicable if withdrawn before time||Higher surrender charges as this is a long-term investment|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. 4.5 lakhs per account and Rs. 9 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.
|Time Interval||POMIS Interest Rate (Per Annum)|
|1st October 2022 - 31st December 2022||6.70%|
|1st July 2022 – 30th September 2022||6.60%|
|1st April 2022 – 30th June 2022||6.60%|
|1st April 2021 – 31st December 2021||6.60%|
|1st April 2018 – 30th June 2018||7.3%|
|1st January 2018 – 31st March 2018||7.3%|
|1st October 2017 – 31st December 2017||7.5%|
|1st July 2017 – 30th September 2017||7.5%|
|1st April 2017 – 30th June 2017||7.6%|
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.