Post Office Monthly Income Scheme (POMIS) {डाकघर मासिक आय योजना}

Updated on Jul 17, 2020

Post Office Monthly Income Scheme (POMIS) is a saving scheme where a person has to deposit a certain amount in his/her post office account every month. On this amount, interest will be added at a specific rate that will be paid to the depositor every month. India Post controls and monitors this MIS. This scheme has a low-risk factor and provides a steady income, so it is a safer investment option. The current interest rate for this scheme is 6.60% per annum. To know more about the Post Office Monthly Income Scheme, read the article till the end. 

Features

The essential features of this MIS are mentioned below:

  • This scheme is safe, so an individual doesn’t have to worry about their money as it is a government scheme,
  • The maturity period for this scheme is 5 years. Individuals can withdraw the money after maturity,
  • This MIS involves low risk,
  • The minimum amount required to open an account is Rs. 1,500,
  • There is a guaranteed return in the form of interest every month,
  • It is tax-free,
  • Indian resident can only open an account, NRIs are not eligible. Minors who are of or above 10 years can also open an account,
  • This interest will b,e credited after the first investment,
  • Maximum balance for the single account holder is 4.5 lakh, for joint account holder is 9 lakh and for the minor is 3 lakh,
  • 2 or 3 individual is needed for opening a joint account. The share will be divided between the members equally,
  • Now, individuals can transfer their account to the recurring deposit,
  • Minors of 10 years or above can open POMIS account, but when they turn 18 years old they can convert the minor account into an adult account, or they can withdraw all the funds from the account,
  • The individual can have a nominee in case the individual die the nominee can claim the money,
  • The individual can collect the monthly interest from the post office, or it can be transferred to their saving account also,
  • Transferability of POMIS account from one post office to another is also available,
  • For double benefit, the individual can again invest in POMIS after maturity,
  • 5% bonus is provided to those individuals who opened the account before 1st December 2011.

Interest Rate

The central government and Finance Ministry keep on changing the interest rate under this scheme. Following are the interest rates over the last few years:

Period 

Rate of Interest

1st April 2017 – 30th June 2017

7.6%

1st July 2017 – 30th September 2017

7.5%

1st October 2017 – 31st December 2017   

7.5%

1st January 2018 – 31st March 2018

7.3%

1st April 2018 – 30th June 2018

7.3%

Eligibility Criteria

The following conditions are to be fulfilled by an individual for opening a POMIS account:

  • Must be a resident of India,
  • The age must be of or above 10 years.

Documents Required

The documents needed for opening a POMIS account are mentioned below:

  • Identification proof such as aadhar card, voter id, passport, driving license, PAN card etc.,
  • Residential proof like electricity bill,
  • Passport-sized photograph.

Who Should Invest?

The individuals who should invest in this MIS are:

  • Individuals who don’t want to take any risk and want a steady and fixed monthly income; this scheme is perfect for them,
  • This scheme is suitable for a retired person or senior citizens,
  • Individual who are willing to make a one-time investment for an extended period for the purpose of receiving monthly income are also suitable for this MIS.

Maximum Investment 

The maximum investments that can be made by an individual in POMIS account are mentioned below:

Account    

Limit 

Single 

4.5 lakh 

Joint 

9 lakh 

Minor 

3 lakh

How to Open a POMIS Account?

You can open a POMIS account in the following steps mentioned below:

  1. First of all, open a post office savings account if you don’t have one,
  2. Get a POMIS application form from your nearby post office.
  3. Fill the application form and submit it with the required details such as identification proof, residential proof and passport-sized photographs,
  4. You need to carry the required original documents for verification,
  5. If you have any nominee, then their name, signature, date of birth and mobile number will be required,
  6. Finally, make the initial deposit via cash or cheque.

POMIS Calculation

The POMIS calculation is explained below:

If you make an investment of 2 lakh with a maturity period of 5 years and let the annual interest rate be 7.7%, it will give a fixed monthly return of Rs. 1,283. When the scheme gets matured, you will get your deposited money back.

Early Withdrawal of the Scheme

Early withdrawal of POMIS account before the maturity period will lead to following consequences mentioned below:

  • If the individual withdraws before one year than zero benefits will be provided,
  • If the individual withdraws, between 1 to 3 years of account opening than the entire amount will be refunded after 2% penalty,
  • If the individual withdraws, between 3 to 5 years of account opening than the entire amount will be refunded after 1% penalty.

POMIS VS Bank FD VS NSC

POMIS

Bank FD

NSC

Fixed rate of interest at 6.60%

Rate of interest is fixed at 7% - 9%

Fixed rate of interest at 8%

Guaranteed Return

Assured return

Assured return

No TDS 

TDS is applicable

`No TDS 

There is an investment limit

No investment limit

No investment limit

Low risk

No risk 

Low risk 

Early withdrawals are possible with penalty  

Early withdrawals are possible but penalty will be applied  

Early withdrawal available in special cases only

No tax rebate

Deposits are eligible for tax exemption

Deposits are eligible for tax rebate 

Maturity period of 5 years

Maturity varies from 7 days to 10 years

Two fixed maturity periods 5 years and 10 years

Lock in period of 1 year

Lock in period of 5 years

Lock in period of 5 years

Difference Between POMIS and Other Monthly Income Scheme

The difference between POMIS and other monthly income scheme are as follows:

 

POMIS

Mutual fund

Insurance 

Fixed income at 6.60% interest rate  

Invested in equity-debt ratio 20:80 

The rate of interest paid is fixed.

Guaranteed returns

No guaranteed returns

Fixed and Guaranteed returns.

No TDS applicable

No TDS applicable

TDS applicable.

Investment limit applicable.

No investment limit.

No investment limit.

Less risk.

Moderate to high risk.

No risk.

Early withdrawal with penalty.

Minimum lock-in period of 3 years for SIP.  

Early withdrawal subject to penal

Frequently Asked Questions

Q. What is the full form of POMIS?

POMIS stands for Post Office Monthly Income Scheme.

Q. What is the Post Office Monthly Income Scheme?

Post Office Monthly Income Scheme is a saving scheme where an individual has to open a POMIS account in the post office and have to deposit a certain amount on which they will receive a monthly interest. You can learn more about this scheme on the official website of Indian Postal Department.

Q. What is the current interest rate under this scheme?

The current interest rate is 6.60%.

Q. How to withdraw from POMIS account after the maturity?

The individual can withdraw the money from the post office, or the payment can also be credited in their saving account.

Q. Is there any tax charged under this scheme?

No, POMIS scheme tax-free.

Q. Is POMIS accounts transferrable?

Yes, POMIS account can be transferred from one place to another.

Q. Do I need a nominee under this scheme?

It’s not compulsory to have a nominee under this scheme.

Q. Can I reinvest the deposited amount after the maturity?

Yes, you can reinvest the deposited amount for 5 years after the maturity period for a double benefit.

Q. Can senior citizens also invest in this scheme?

Yes, senior citizens or retired persons both can invest in this scheme.

Q. Where can I find the application form for POMIS account?

You can find the application form in your nearest post office, or you can download it from the official website of India Post portal, i.e., indiapost.gov.in.

Q. Can I convert a single account into a joint account?

Yes, you can convert it.

Q. What is the minimum balance required in the POMIS account?

The minimum balance required is Rs. 1,500.

Q. Who will be eligible for a bonus under this scheme?

Depositors who opened the account before 1st December 2011 will be eligible for a 5% bonus under this scheme.

Q. What is the minimum period after which the depositors can withdraw the amount?

The minimum period after which the depositors can withdraw the amount is 12 months.

Q. Can NRIs apply for this scheme?

No, NRIs can’t apply for this scheme.

Q. Can 8-year old apply for this scheme?

No, the minor has to be alteast 10 year old for applying into this scheme.

Q. What are the documents needed for opening a POMIS account?

The documents required for opening a POMIS account are – identity proof, residence proof and passport size photo.


Categories

WRITTEN BYVarsha Verma

Add comment