Post Office Monthly Income Scheme or POMIS is a safe investment scheme recognized by the Ministry of Finance, Government of India. This scheme is special for investors who want regular monthly income with low risk.
At present the interest rate on this scheme is 7.4% and the interest is paid every month. After opening the Post Office Monthly Income Scheme account, investors can invest the amount as per their capacity. However, the minimum investment required in this is ₹ 1000. This scheme is considered to be an option for stable and reliable income, in which the interest on the invested amount is deposited in the account every month by the concerned post office. When you deposit ₹ 9,00,000 in lump sum in the post office, then according to the calculation based on 7.4 percent annual interest rate, you will get an income of Rs 5550 every month.
Key Features of POMIS Scheme
The maximum period of Post Office Monthly Income Scheme is 5 years. In this scheme, minimum 1 and maximum 3 persons can open an account jointly. The account holder can appoint a nominee to give the benefits of the scheme after his death. If nomination is not made at the time of opening the account, it can be added later also. This account can be transferred from one place to another in any post office in India. The monthly interest received from Post Office Monthly Income Scheme is fully taxable and is taxable as per the income tax slab of the investor. There is no tax exemption under Section 80C on investment in this scheme. Also, TDS on interest is not deducted by the post office, but it is mandatory for the investor to show it in his income.
How much money can be deposited in the scheme
The minimum deposit required to open an account is ₹1,000. Deposits are allowed only once into an account. A maximum of ₹9 lakh can be deposited in a single account, while in a joint account this limit has been set at ₹15 lakh. Further, the total amount deposited by an individual in all accounts combined shall not exceed ₹9 lakh in case of a single account and ₹15 lakh in case of joint account. The account holder can be allowed to withdraw the deposit and close the account any time after the expiry of the period of one year from the date of account opening. Also understand here that if the account holder does not claim the interest received every month, then no additional interest will be given on that interest.
What are the rules regarding closing the account?
Post Office Monthly Income Scheme account is not allowed to be closed before completion of 1 year from the date of opening. If the account is closed on or before completion of 3 years from the date of account opening, 2% of the deposited amount will be deducted and the remaining amount will be paid. Also if the account is closed after completion of 3 years from the date of account opening, 1% of the deposited amount will be deducted and the remaining amount will be paid to the depositor.