Post Office Monthly Income Scheme (POMIS)

Admin
March 03, 2023

The Post Office Monthly Income Scheme (POMIS) is a savings scheme offered by the Indian Postal Service. It is a popular investment option among the retired and elderly who seek a regular source of income. POMIS is a low-risk investment option that provides a fixed rate of return on investment, making it an attractive choice for many investors.

In this article, we will discuss POMIS in detail, covering its features, benefits, eligibility criteria, investment limits, and more.

Features of Post Office Monthly Income Scheme (POMIS)

POMIS is a savings scheme that allows investors to earn a fixed rate of return on their investment. The following are the key features of POMIS:

  1. Tenure: The tenure of POMIS is 5 years.

  2. Investment Limit: The minimum investment in POMIS is Rs. 1,500, and the maximum investment limit is Rs. 4.5 lakh for a single account holder and Rs. 9 lakh for joint account holders.

  3. Interest Rate: The interest rate offered on POMIS is fixed and is currently 6.6% per annum, payable monthly. The interest rate is subject to change based on the government's policies and regulations.

  4. Tax Benefits: The investment in POMIS is eligible for tax benefits under Section 80C of the Income Tax Act, up to a maximum of Rs. 1.5 lakh per annum.

  5. Withdrawals: POMIS allows partial withdrawals of up to 50% of the invested amount after one year of opening the account. However, premature withdrawal of the investment is allowed only after completing three years from the date of opening the account, subject to certain conditions.

  6. Nomination: Investors can nominate one or more persons to receive the investment amount and interest in case of their death.

Benefits of Post Office Monthly Income Scheme (POMIS)

The following are the benefits of investing in POMIS:

  1. Fixed Return: POMIS offers a fixed rate of return on investment, making it a stable and reliable investment option for those seeking a regular source of income.

  2. Low-Risk Investment: POMIS is a low-risk investment option as it is backed by the government of India, and the invested amount is guaranteed.

  3. Tax Benefits: The investment in POMIS is eligible for tax benefits under Section 80C of the Income Tax Act, making it a tax-efficient investment option.

  4. No Market Risks: POMIS is not linked to the stock market, and hence, there are no market risks associated with this investment option.

Eligibility Criteria for Post Office Monthly Income Scheme (POMIS)

The following are the eligibility criteria for POMIS:

  1. Citizenship: POMIS is open to all Indian citizens, including minors and senior citizens.

  2. Age Limit: There is no age limit for opening a POMIS account.

  3. Number of Accounts: A person can open multiple POMIS accounts, subject to the maximum investment limit of Rs. 4.5 lakh for a single account holder and Rs. 9 lakh for joint account holders.

  4. Joint Account: POMIS allows joint accounts to be opened by up to three adults, with the investment limit being Rs. 9 lakh.

How to Open a Post Office Monthly Income Scheme (POMIS) Account

The following is the process to open a POMIS account:

  1. Visit the nearest post office branch that offers POMIS.

  2. Obtain the POMIS account opening form from the post office.

  3. Fill in the required details in the form, such as name, address, and investment amount.

  4. Submit the form along with the required documents, such as identity proof and address proof.

  5. Make the investment amount by cash, cheque, or demand draft.

  6. The post office will verify the documents and process the application.

  7. Once the application is approved, the post office will issue a passbook to the investor, which will contain all the details of the account.

Conclusion

Post Office Monthly Income Scheme (POMIS) is a safe and reliable investment option for those seeking a regular source of income. It offers a fixed rate of return on investment, and the invested amount is backed by the government of India. POMIS is eligible for tax benefits under Section 80C of the Income Tax Act, making it a tax-efficient investment option. However, investors must note that the interest rate offered on POMIS is subject to change based on government policies and regulations. It is advisable to consult a financial advisor before investing in POMIS or any other investment scheme.