Post Office Monthly Scheme (POMIS) is a very good avenue to save your precious hard earned money. It’s a very good saving option for salaried individuals. On your saving in this scheme i.e Post Office Monthly Scheme (POMIS), you will receive fixed interest every month. You can deposit your money in any post office across India.
Introduction to the Post-Office Monthly Income Scheme(POMIS):-
In this era when the market is filled with lots of banking financial instruments, products and services, the post office is also doing well to channelize the domestic savings and providing good competitive returns on your savings and it is very much reliable. It is a financial instrument which is low risk and gives fixed regular income.
Suppose you have an amount of Rs. 5 Lakh and you deposited it in the post office monthly Income, so as per interest rate of 7.3% you will receive Rs. 3, 250 every month for 5 years. After maturity, you can withdraw your money from any post office or you can transfer it into your savings account via Electronic Clearance service.
Features & Benefits of Post office Monthly Income Scheme
- Protection of Capital – your money is safe till the maturity because it is a Government-backed scheme.
- Lock-in Period – the lock-in period or tenor for Post office MIS scheme is 5 years. You can withdraw the invested amount. If you want you can reinvest it too.
- Low-risk investment option – it is a fixed income scheme, so the money you invested is not subject to market risk.
- Start investing small amount – you can start your initial investment with just Rs. 1, 500 or as per your affordability.
- Guaranteed Returns – there is a guaranteed return on your investment for the whole duration. Although this return can’t beat the inflation, but it is higher as compared to Fixed Deposit.
- Tax-efficiency – although Post Office Monthly Scheme (POMIS) doesn’t fall under section 80C, so it is subject to taxation. But it has no TDS.
- Eligibility – Only resident Indian can open this account.
- Multiple Accounts – You can open multiple accounts in your name. But the total deposit amount should not exceed to the Rs. 4.5 Lakh together.
- Joint Account – you can open POMIS joint account with 2 or 3 people. Irrespective who is contributing how much money, equal amount belong to all account holders.
- Transfer of account – when you shift from one city to another, you can easily transfer your investment to your post office in the current city, for which you don’t have to pay any extra cost.
To Download KYC form:-
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How to Open the Account?
Opening a POMIS account is very simple. Please have a look at the step by step process of opening account –
- First, you have to open a post office savings account. If you have one, then it’s fine.
- Collect a POMIS application form from the post office.
- Fill the form and submit it along with a Xerox copy of your ID, residential proofs, and 2 passport size photos. Please make sure that you carry your original documents for verification purpose.
- Get the signature of your witness or nominee.
- Make the initial deposit via cash or cheque.
Post Office Monthly Scheme (POMIS) is a flexible and reliable investment scheme, which is popular for risk-averse investors or who wants risk free regular income on their savings.
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