Who doesn’t want to save money, but one should know the right place to save. Post Office Monthly Income Scheme or POMIS is a popular investment scheme wherein an individual invests a particular amount and gets an assured monthly income in the form of interest. Under the Post Office MIS scheme, the interest payable on a monthly basis commencing from the date of deposit is deposited in your post office savings account. There are no income tax benefits available for investing in the Post Office Monthly Income Scheme. This scheme is suitable for those who want a steady flow of income, such as retired persons.
5 things know about the Post Office Monthly Income Scheme (POMIS):
The opening of Post Office Monthly Income Scheme (POMIS) account
There is no entry age. The Post Office MIS account can be transferred from one post office to another. Any number of accounts can be opened in any post office, subject to a maximum investment limit by adding balance in all accounts. The Post Office Monthly Income Scheme (POMIS) account can be opened in the name of a minor. Minors can operate the account from the age of 10 years. It can also be opened on a joint basis.
The interest rate applicable to Post Office Monthly Income Scheme
A person who wants to open a Post Office Monthly Income Scheme account now will get an interest rate of 7.5 percent per annum, payable monthly.
A depositor can operate more than one account under the Post Office Monthly Income Scheme (POMIS), subject to the ceiling of the maximum amount, which may be invested in a single or joint account. The maximum limit is cumulative Rs. 4.5 lakh in single accounts and Rs. 9 lakh in joint accounts.
The maturity period of Post Office Monthly Income Scheme is five years.
Premature closure of Post Office Monthly Income Scheme (POMIS) account
The scheme can be prematurely closed after one year. A deduction amounting to 2 percent of the deposit will be applicable to a depositor closing the account between 1 year and three years after opening. And after three years, 1 percent will be deducted. The remainder will be paid to the depositor.