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The Post Office Monthly Income Scheme (POMIS) is a savings scheme offered by India Post, designed to provide a steady monthly income to investors. It is a low-risk investment option, making it ideal for those who prefer safe and regular returns.
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Who Can Apply for POMIS?
- Individuals: Any Indian citizen can open a POMIS account.
- Minors: Minors aged 10 and above can open an account under their name, with a guardian managing it.
- Joint Accounts: Up to three adults can open a joint POMIS account, and the benefits are shared equally among the account holders.
Eligibility Criteria
- Resident Status: Only Indian residents are eligible. Non-Resident Indians (NRIs) and foreign nationals cannot invest in POMIS.
- Age: Minors can apply, but their account must be operated by a guardian until they turn 18.
Benefits of POMIS
- Steady Monthly Income: POMIS provides regular and guaranteed monthly interest payouts.
- Low Risk: It is backed by the Government of India, ensuring the safety of your investment.
- Flexible Investment Limits: You can invest as low as ₹1,000 and up to ₹4.5 lakh in an individual account or ₹9 lakh in a joint account.
- Ease of Access: Accounts can be opened and managed at any post office in India.
- Nomination Facility: You can nominate a beneficiary at the time of opening or anytime during the tenure.
Conditions for Availing Benefits
- Lock-in Period: The investment is locked for 5 years. Withdrawals before maturity attract penalties.
- Interest Rate: The interest rate is determined quarterly by the government and remains fixed for the duration of the scheme. Interest is credited monthly.
- Premature Closure: Allowed after one year but before three years with a 2% deduction, and after three years with a 1% deduction.
How to Invest in POMIS?
- Visit the Post Office: Go to your nearest post office with the required documents.
- Fill the Form: Complete the POMIS application form, available at the post office or online.
- Submit Documents:
- Identity proof (Aadhaar, PAN, etc.)
- Address proof
- Passport-size photographs
- Deposit Amount: Deposit the desired investment amount through cash, cheque, or demand draft.
- Account Opening: Once the formalities are completed, your POMIS account will be activated, and you’ll receive a passbook.
Important Links
FAQs About POMIS
Q1. What is the minimum and maximum investment in POMIS?
- The minimum investment is ₹1,000. The maximum is ₹4.5 lakh for a single account and ₹9 lakh for a joint account.
Q2. Can I reinvest the interest earned?
- No, the interest cannot be reinvested automatically. You can withdraw it monthly or transfer it to a savings account.
Q3. Is TDS applicable on POMIS?
- No TDS is deducted. However, the interest earned is taxable as per your income tax slab.
Q4. Can I open multiple POMIS accounts?
- Yes, but the total investment across all accounts should not exceed the prescribed limits (₹4.5 lakh for individuals and ₹9 lakh for joint accounts).
Q5. What happens after maturity?
- After 5 years, you can withdraw the principal amount or reinvest it in another POMIS account.
