If you’re looking for a safe and reliable investment option with a guaranteed return, the Post Office Monthly Income Scheme (POMIS) is an excellent choice. The POMIS is a low-risk investment option offered by the Indian postal department, which provides a fixed monthly income to investors for a period of five years. In this blog, we’ll explore the details of the POMIS and how it can be a smart investment for those seeking regular income.
What is Post Office Monthly Income Scheme?
The Post Office Monthly Income Scheme (POMIS) is a government-backed investment scheme designed to provide a regular monthly income to investors. It is a type of fixed deposit account offered by the Indian postal department, and it has a tenure of five years. The interest rate on POMIS is fixed and is paid out on a monthly basis, making it an ideal investment option for those who are looking for a steady stream of income.
Features of Post Office Monthly Income Scheme
Here are some of the key features of the Post Office Monthly Income Scheme:
Investment Amount: The minimum investment amount for POMIS is Rs. 1,500, and the maximum is Rs. 4.5 lakhs for single accounts and Rs. 9 lakhs for joint accounts.
Tenure: The POMIS has a tenure of five years, and premature withdrawal is allowed after one year.
Interest Rate: The interest rate on POMIS is fixed at 6.6% per annum. The interest is paid out on a monthly basis.
Taxation: The interest earned on POMIS is taxable, and tax is deducted at source if the interest earned is more than Rs. 10,000 in a financial year.
Nomination: The nomination facility is available for POMIS accounts.
Benefits of Post Office Monthly Income Scheme
Here are some of the benefits of investing in the Post Office Monthly Income Scheme:
Safe and Secure: POMIS is a government-backed investment scheme, which makes it a safe and secure investment option.
Guaranteed Return: The interest rate on POMIS is fixed, and investors are guaranteed a monthly income for the entire tenure of the scheme.
Regular Income: The monthly payout of interest on POMIS makes it an ideal investment option for those seeking a regular stream of income.
Easy to Invest: Investing in POMIS is easy, and it can be done at any post office across the country.
Premature Withdrawal: Premature withdrawal is allowed after one year, although a penalty is charged for early withdrawal.
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How to Invest in Post Office Monthly Income Scheme?
Investing in the Post Office Monthly Income Scheme is easy. Here’s how you can do it:
- Visit your nearest post office and fill out the POMIS application form.
- Submit the application form along with the necessary documents, such as ID proof, address proof, and passport-size photographs.
- Make the investment amount in cash, cheque, or demand draft.
- Once your account is opened, you will receive a passbook, which will show the details of your investment.
Conclusion
The Post Office Monthly Income Scheme (POMIS) is a safe and reliable investment option that provides a fixed monthly income to investors for a period of five years. It is a government-backed scheme, which makes it a secure investment option. The interest rate on POMIS is fixed, and investors are guaranteed a monthly income for the entire tenure of the scheme. Investing in POMIS is easy, and it can be done at any post office across the country. If you’re looking for a low-risk investment option that provides a regular stream of income, the Post Office Monthly Income Scheme is a smart choice.
Frequently asked questions (FAQ) about the Post Office Monthly Income Scheme (POMIS):
Q.1) What is the minimum and maximum investment amount for POMIS?
The minimum investment amount for POMIS is Rs. 1,500, and the maximum is Rs. 4.5 lakhs for single accounts and Rs. 9 lakhs for joint accounts.
Q.2) What is the tenure of POMIS?
The POMIS has a tenure of five years.
Q.3) What is the interest rate on POMIS?
The interest rate on POMIS is fixed at 6.6% per annum.
Q.4) Is premature withdrawal allowed in POMIS?
Yes, premature withdrawal is allowed after one year. However, a penalty is charged for early withdrawal.
Q.5) Is nomination facility available for POMIS accounts?
Yes, nomination facility is available for POMIS accounts.
Q.6) Is the interest earned on POMIS taxable?
Yes, the interest earned on POMIS is taxable, and tax is deducted at source if the interest earned is more than Rs. 10,000 in a financial year.
Q.7) How can I invest in POMIS?
You can invest in POMIS by visiting your nearest post office and filling out the POMIS application form. You will need to submit the application form along with the necessary documents, such as ID proof, address proof, and passport-size photographs. You can make the investment amount in cash, cheque, or demand draft.
Q.8) Is POMIS a safe investment option?
Yes, POMIS is a safe and reliable investment option as it is a government-backed investment scheme.
Q.9) What are the benefits of investing in POMIS?
The benefits of investing in POMIS include a safe and secure investment option, a guaranteed return with a fixed interest rate, regular monthly income, easy investment process, and a nomination facility.
