Post Office Monthly Income

Post Office Monthly Income – POMIS is a saving scheme backed by the Indian government. This is a safe, secured, and minimal risk scheme which provides stable monthly income to the individuals who invested. Interest is payable till the maturity of the scheme. The time limit is 5 years. This has the highest interest rate of 7.4%, which will change by the government every quarter.

Below are the details about the post office monthly income scheme.

Post Office Monthly Income Details:

1. Objectives

• Post office monthly income scheme provides the fixed income by giving the monthly interest to account holder.
• Moreover, this is a good investment opportunity for people looking for a low-risk and stable income.

2. Eligibility

• Indian Citizens should invest in this scheme.
• NRI (Non-Resident Indians) and HUFs (Hindu Undivided Families) are not eligible.
• Investors should be above the age of 18.
• Minors can open this account with the help of guardian/Parents.

3. Investment Limit

• Minimum Investment: Rs. 1,000
• Maximum Investment:
  • For Individual account, the maximum investment is up to Rs.9 Lakhs. One can have many POMIS accounts but should not exceed the limit of 9 Lakhs.
  • For Joint account, the maximum investment is up to Rs.15 Lakhs. Maximum 3 join tees.
• One can have many accounts but should exceed the individual limit.

4. Time Limit

• The time limit of this scheme is 5 years.
• After completion of the time limit, you will not receive the deposit amount. The deposit and interest will be paid monthly in this scheme.
• After maturity of the scheme, the account is closed or can be reinvested.

5. Interest Rate

• The Indian government decides the Interest rate. Every quarter, the interest rate is altered.
• The present interest rate is 7.4% per annum and it is payable on a monthly basis.

6. Monthly Payment

• Interest amount is calculated on basis of principal amount and it is paid monthly.
• Also, receive the payment either as cash or to the account.

7. Premature Withdraw

Closure of account after one year based on the below conditions:

• After one year and before 3 years from the account opening date, then 2% is deducted from the principal amount and the remaining amount is paid back.
• After 3 years from the account opening date, then 1% is deducted from the principal amount.

8. Tax Exemption

• No Tax Exemption: No tax exemption for those who invest in POMIS.
• TDS: Interest earned has no TDS.

9. Nomination

• Assign the nominees, at the beginning or during the time limit of the scheme.
• On the death of the account holder, the nominee will get the amount.

10. Transfer

• Transfer POMIS account to any post office in India.

11. Reinvest

• Reinvest the principal amount after completion of 5 Years.

Documents Required:

• Identity Proof such as a Passport, Voter Card, Aadhar Card, and Driving License.
• Address proof such as electricity bills, Voter Card, and Aadhar card
• Passport-size photograph.

Post Office Monthly Income Application process

POMIS scheme is very easy to open and maintain. The individual must be an account holder of the post office to open this account.

• Firstly, visit the nearest Post office.
• Then, get the POMIS form.
• Fill out the form with all details.
• Also, submit the form along with all the required documents.

Key features

• Security: As the scheme is backed by the Indian Government, it is a safe and secured savings scheme.
• Fixed Income: Pensioners and people seeking additional income can invest in this scheme

Post Office Monthly Income Scheme is a fixed income scheme. It is a great scheme for the people who wish to invest with minimal risk.

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