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What Is A Post Office Monthly Income Scheme (POMIS): What Are The Benefits
The Post Office Monthly Income Scheme (POMIS) can be offered by the Post Office, which is regulated by the union government of India. In the scheme, you can invest a certain amount of money and you can earn a fixed interest which you will earn monthly. This scheme will be useful for you to have an assured income every month to meet your small needs. It can be used as an additional income to your monthly wage. Senior citizens usually invest in the Senior Citizen Savings Scheme (SCSS), as both of them have the same lock-in period but the SCSS offers a better interest.
Interest rate and deposit rules
The interest rate of the Post Office Monthly Income Scheme (POMIS) is now at 6.6% PA, payable monthly. The interest will be taxable in the hand of the depositor. A minimum of Rs. 1000 you can invest in the scheme while the upper limit is Rs. 4.5 lakhs. However, in the case of a joint account, the upper limit will be Rs. 9 lakh. You can draw the interest through auto credit into a savings account standing at the same post office, or ECS. The Post Office informs that in the case of MIS account at CBS Post offices, monthly interest can be credited into savings account standing at any CBS Post Offices.
Lock-in period
The POMIS has a lock-in period of 5 years, and before 1 year you cannot withdraw your deposits. However, in case the account is closed after 1 year and before 3 years, you will have to face a 2% deduction from the principal, and the remaining amount will be paid. In case you close the account after 3 years and before 5 years, you will have to face a 1% deduction from the principal, and the remaining amount will be paid. As the Post Office informs, if the account holder dies before the scheme's maturity, the account may be closed and the amount will be refunded to the nominee/legal heirs. Additionally, the interest will be paid up to the preceding month, in which a refund is made.
Account opening
Account opening for the Post Office Monthly Income Scheme (POMIS) is an easy procedure. To apply for this scheme, you do not need to visit the Post Office in the first place. The Form for the same scheme is available online, on the official website of the Post Office. The scheme is a new offering that is offered by the union government under the National Savings (MIS) Account Rules 2019. An Indian adult citizen can open a POMIS account. In the case of a joint account, up to 3 adults can open a joint account. However, a parent can open a POMIS account for a minor or for a person of unsound mind. A minor above 10 years can also open in her/ his name.
