Post Office Monthly Income Scheme (POMIS) is a prestigious scheme recognized by the Government as one of the best initiative under the Ministry of Finance. It provides a fixed monthly income to investors who deposit a lump sum amount for a tenure of 5 years.
The scheme is popular among risk-averse individuals seeking a steady income stream. The interest rate is set by the government and is paid out monthly. POMIS is accessible through post offices across India, making it a convenient investment option for those looking for a reliable source of income.
Post Office Monthly Income Scheme (POMIS) PDF File Download Now
With an impressive interest rate of 6.6%, this scheme guarantees monthly distribution of returns, making it one of the most attractive investment options. Let us look into the intricacies of this scheme and highlight the benefits it offers to investors looking for stable income sources.
| Key Point | Details |
|---|---|
| Scheme Name | Post Office Monthly Income Scheme (POMIS) |
| Interest Rate | 6.6% |
| Maturity Period | Maximum 5 years |
| Number of Holders | 1 to 3 individuals |
| Nomination | Permitted, benefits go to the nominee in case of demise |
| Transferability | Transferable across post offices in India |
| POMIS Bonus | 5% bonus for accounts opened before Dec 1, 2011 |
| Taxability | No TDS, tax benefit: Income does not come under taxation |
| Capital Protection | Backed by the Government, ensuring the safety of capital |
| Lock-in Period | Minimum 5 years, withdrawable after maturity |
| Affordable Premium | Low monthly premium compared to other schemes |
| Inflation Resistance | Provides monthly income even during inflation |
| Multiple Fund Owners | Joint holders can collaborate on a single account |
| Ease of Transaction | Simple processes for deposits, withdrawals, and management |
| Ideal for | Risk-averse investors, especially senior citizens |
| Interest Rates (Current) | 1 year: 5.50%, 2 years: 5.50%, 3 years: 5.50%, 5 years: 7.6% |
| Maximum Investment Limits | Single: ₹4,50,000, Joint: ₹9,00,000, Minor: ₹3,00,000 |
| Eligibility | Indian citizen residing in India, minimum age 18 |
| Exclusions | Non-resident Indians not eligible |
| Application Process | Offline, requires a Post Office savings account |
| Documents Required | Proof of Identity, Proof of Address, Passport-sized photos |
Note: However, it’s important to note that POMIS has a fixed maturity period, and premature withdrawals may be subject to certain conditions and penalties.
I. Understanding Post Office Monthly Income Scheme (POMIS)
1.1 What is POMIS?
Post Office Monthly Income Scheme (POMIS) is a government-backed investment scheme designed to provide investors with a consistent monthly income. The scheme, offering an impressive interest rate of 6.6%, is managed by the Indian post office.
1.2 Key Features of POMIS
1.2.1 Maturity Period
The maximum tenure of POMIS is 5 years, providing investors with a reasonable time horizon for their financial goals.
1.2.2 Number of Holders
One to three individuals can hold a POMIS account, fostering joint investments and financial collaboration.
1.2.3 Nomination
Investors can nominate a beneficiary, ensuring seamless transfer of scheme benefits in the event of the investor’s demise.
1.2.4 Transferability
POMIS accounts can be easily transferred from one post office to another anywhere in India, enhancing the scheme’s accessibility.
1.2.5 POMIS Bonus
Accounts opened before December 1, 2011, enjoy a 5% bonus, providing an additional incentive for early investors.
1.2.6 Taxability
Income from POMIS is exempt from TDS, offering investors a tax-efficient investment avenue.
II. Benefits of Investing in POMIS
2.1 Capital Protection
Backed by the government, POMIS ensures the safety of the invested capital.
2.2 Low-Risk Investment
With no market capitalization risks, POMIS is a low-risk investment option, appealing to risk-averse investors.
2.3 Lock-in Period
The minimum lock-in period of 5 years ensures a stable investment horizon, with the flexibility to withdraw funds after maturity.
2.4 Affordable Premium Amount
The monthly premium for POMIS is comparatively low, accommodating a wide range of investors with varying financial capacities.
2.5 Inflation Resistance
Even during inflation, POMIS provides a monthly income stream, shielding investors from the erosive effects of rising prices.
2.6 Multiple Fund Owners
Joint holders can collaborate and jointly own a POMIS account, facilitating shared financial goals.
2.7 Ease of Transaction
The process of depositing, withdrawing, and managing funds in POMIS is remarkably straightforward, ensuring a hassle-free experience for investors.
2.8 Ideal for Risk-Averse Investors
Tailored for risk-averse investors seeking a reliable source of monthly income, POMIS is particularly advantageous for long-term and regular income objectives, making it an ideal choice for senior citizens.
III. Current Interest Rates
Investors should be aware of the prevailing interest rates when considering POMIS. As of now, the rates are as follows:
| Duration (in Years) | Interest Rate |
|---|---|
| 1 | 5.50% |
| 2 | 5.50% |
| 3 | 5.50% |
| 5 | 7.6% |
IV. Details of Investment
4.1 Single Account
- Minimum deposit: ₹1500
- Maximum deposit: ₹4,50,000
4.2 Joint Account
- Minimum deposit: ₹1500
- Maximum deposit: ₹9,00,000
4.3 Minor Account
- Minimum deposit: ₹1500
- Maximum deposit: ₹3,00,000
4.4 Maximum Investment Limits
- Single Account: ₹4,50,000
- Joint Account: ₹9,00,000
- Minor Account: ₹3,00,000
Example:
Suppose an investor deposits ₹1,00,000 for 5 years with a monthly interest rate of 6.60%. The fixed monthly income according to the POMIS scheme would be ₹550.
V. Eligibility Criteria
To avail the benefits of POMIS, individuals must meet the following eligibility criteria:
- Citizenship: The applicant must be a citizen of India.
- Residence: The applicant must be residing in India.
- Age: The applicant should be at least 18 years old.
- Minor Accounts: Accounts can be opened on behalf of minors aged 10 years or older, with access granted upon reaching the age of 18.
VI. Exclusions
POMIS is not applicable to non-resident Indians.
VII. Application Process
7.1 Offline Process
To open a POMIS account offline, follow these steps:
- Have a Post Office savings account.
- Obtain the POMIS Account application form from the Post Office or download it here.
- Fill and submit the form with self-attested copies of required documents at the Post Office, along with original documents for verification.
- Provide nominee details, including Name, DOB, and Mobile no.
- Make initial deposits (Minimum Rs.1000/-) via cash or cheque.
7.2 Documents Required
- Proof of Identity: Copy of government-issued ID (Passport, Voter ID card, Driving License, Aadhaar, etc.).
- Proof of Address: Government-issued ID or recent utility bills.
- Passport size photographs.
Most useful other information about Post Office Monthly Income Scheme (POMIS)
| Feature | Information |
|---|---|
| Withdrawal Options | You can withdraw the deposited amount either from the post office or credit it to your savings account through ECS. |
| Withdrawal Frequency | Monthly withdrawals are possible, but you can also let some amount accumulate and withdraw it all together after a few months. |
| Account Transfer | You can transfer your account from one post office to another for free. |
| Reinvestment Option | Investors can reinvest their accumulated money at the end of the tenure. |
| Tax Deduction at Source (TDS) | No TDS, but the interests earned are taxable. |
| Nomination Facility | A nominee can be appointed to receive the accumulated amount in case of the investor’s demise. |
| Tax Benefits | POMIS does not offer any tax benefits under Section 80C of the Income Tax Act, 1961. |
| Suitability for Senior Citizens | POMIS is highly suitable for senior citizens and retired individuals. |
| Withdrawal Form | Withdrawal forms can be obtained from the post office or downloaded from the India Post website. |
| Interest Post Maturity | If the amount is not withdrawn after 5 years, it continues to earn simple interest for up to 2 years based on post office savings account interest rates. |
The Post Office Monthly Income Scheme stands as a secure and lucrative investment option for those seeking steady returns with minimal risk. With its government backing, attractive interest rates, and ease of operation, POMIS remains a compelling choice for both seasoned and novice investors alike.
