POMIS: The interest rate on Post Office Monthly Income Scheme is 7.4 percent per annum. Now a maximum of Rs 9 lakh can be deposited in it through a single account and a maximum of Rs 15 lakh through a joint account. This is a government-backed small savings scheme
Post Office Monthly Income Account: After retirement, there are many people who are looking for a scheme where they can get a fixed amount every month once they invest. Satish, who works in a private company, is also among them and is looking for a better option. After consulting a financial advisor, he came to know about the Post Office Small Savings Scheme Monthly Income Scheme (POMIS). With attractive interest rates, the Post Office Monthly Income Scheme is a safe investment option, which can become a source of regular income for anyone.
Interest rate 7.4% per annum
The current interest rate on Post Office Monthly Income Account is 7.4% per annum. Now a maximum of Rs 9 lakh can be deposited in it through a single account and a maximum of Rs 15 lakh through a joint account. Post Office Monthly Income Account is a government-backed small savings scheme, which gives guaranteed returns. If it is a post office scheme, then there is a guarantee of 100% security in it. Apart from a single account, there is also a facility to open a joint account with the spouse.
Eligibility: Who can open an account
(i) Single account in the name of an adult
(ii) Joint account (maximum 3 adults together) (Joint A or Joint B)
(iii) Guardian of a minor can open an account in his name
(iv) If the minor is 10 years old, then the account can be opened in his name
POMIS: Deposit rules
(i) A minimum investment of Rs 1000 is required to open this account, after which deposits can be made in multiples of Rs 1000.
(ii) A maximum of Rs 9 lakh can be deposited in a single account and a maximum of Rs 15 lakh in a joint account.
(iii) In a joint account, each holder has an equal share in the investment.
Interest: How is interest added in this scheme
This small savings scheme is giving 7.4 percent annual interest. The annual interest on the money deposited in it is divided into 12 parts, and it will come to your account every month. If you do not withdraw the money monthly, it will remain in your post office savings account and you will get interest further by adding this money along with the principal. The maturity of this scheme is 5 years, but after 5 years it can be extended according to the new interest rate.
Monthly Income: How much money will come every month
Interest rate: 7.4 percent per annum
Maximum investment from joint account: Rs 15 lakh
Annual interest: Rs 1,11,000
Monthly interest: Rs 9250
If single account then
Interest rate: 7.4 percent per annum
Maximum investment from joint account: Rs 9 lakh
Annual interest: Rs 66,600
Monthly interest: Rs 5550
MIS: You can extend the scheme even after maturity
The maturity of Monthly Income Scheme is 5 years, but after 5 years it can be extended as per the new interest rate. Under the scheme you are getting better returns than bank FD. If you do not want to continue in the scheme after 5 years, then your entire deposited amount will be returned.
On premature closure of the scheme
(i) No deposit amount can be withdrawn before the expiry of 1 year from the date of deposit.
(ii) If the scheme is closed after 1 year and before 3 years from the date of opening the account, 2% of the principal amount will be deducted and the balance amount will be paid.
(iii) If the scheme is closed after 3 years and before 5 years from the date of opening the account, 1% of the principal amount will be deducted and the balance amount will be paid.
(iv) The account can be closed prematurely by submitting the prescribed application form along with the passbook to the concerned post office.
