Post Office Monthly Income Scheme
Post Office Monthly Income Scheme (POMIS) is very popular among the investors of the country who want a fixed income every month without any risk. This scheme is considered especially beneficial for retired people and such investors who want stable returns while staying away from market fluctuations.
How much can I invest?
There is a fixed investment limit in this government small savings scheme. A single account holder can invest a maximum of Rs 9 lakh, whereas in a joint account this limit is up to Rs 15 lakh. At present, the government is giving 7.4% annual interest on this scheme, which is deposited in the investors’ accounts every month. The government reviews interest rates every three months.
What is the monthly income on Rs 15 lakh?
If an investor invests Rs 15 lakh under a joint account, he gets a fixed income every month.
As per current interest rate:
- Total investment: Rs 15,00,000
- Monthly Income: Around Rs 9,249
- Annual interest: Around Rs 1,11,000
In this way, in the entire period of 5 years, the investor gets a total interest of approximately Rs 5,55,000. That means this scheme becomes a stable source of regular monthly income without any risk.
Investment period and terms
POMIS has a maturity period of 5 years. After investing in it, withdrawal of money is not allowed before 1 year. If the account is closed within 3 years, 2% amount is deducted. At the same time, there is a deduction of 1% on closure after 3 years.
What do the tax rules say?
There is no tax exemption of any kind on investment in this scheme. Apart from this, the interest received is added to the investor’s income and taxable as per his tax slab. However, the post office does not deduct TDS on this, due to which investors receive the full amount.
