Post Office Monthly Income Scheme (POMIS) {डाकघर मासिक आय योजना}
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:
- First of all, open a post office savings account if you don’t have one,
- Get a POMIS application form from your nearby post office.
- Fill the application form and submit it with the required details such as identification proof, residential proof and passport-sized photographs,
- You need to carry the required original documents for verification,
- If you have any nominee, then their name, signature, date of birth and mobile number will be required,
- 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.