Post Office Monthly Income Account: Mukesh was looking for a scheme where once he invested, he would get a fixed amount every month. After consulting a financial advisor, he came to know about the Post Office’s Small Savings Scheme Monthly Income Scheme (POMIS). With attractive interest rates, Post Office Monthly Income Scheme is a safe investment option, which can become a source of regular income for anyone.
Interest rate 7.4 percent per annum
The current interest rate on Post Office Monthly Income Account is 7.4 percent per annum. Now a maximum of Rs 9 lakh can be deposited through a single account and a maximum of Rs 15 lakh can be deposited through a joint account. Post Office Monthly Income Account is a government supported small savings scheme, where guaranteed returns are available. If there is a post office plan then there is 100 percent guarantee of security in it. In this, along with single account, there is also a facility to open a joint account with the spouse.
Who can open an account
(i) Single account in the name of an adult
(ii) Joint Account (maximum 3 adults together) (Joint A or Joint B)
(iii) The guardian can open an account in the name of the minor
(iv) If it is a minor of 10 years then in his/her name
POMIS: Deposit Rules
(i) To open this account, a minimum investment of Rs 1000 is required, after which deposits can be made in multiples of Rs 1000.
(ii) You can deposit a maximum of Rs 9 lakh in a single account and a maximum of Rs 15 lakh in a joint account.
(iii) In a joint account, each holder has equal share in the investment.
How is interest added to this scheme?
This small savings scheme is giving 7.4 percent annual interest. The annual interest earned on the money deposited in this is divided into 12 parts, and will come to your account every month. If you do not withdraw the money monthly, it will remain in your post office savings account and you will get further interest by adding this money along with the principal amount. The maturity of this scheme is 5 years, but after 5 years it can be extended according to the new interest rate.
How much money will come every month
Interest rate: 7.4 percent per annum
Maximum investment through joint account: Rs 15 lakh
Annual interest: Rs 1,11,000
Monthly interest: Rs 9250
If there is a single account
Interest rate: 7.4 percent per annum
Maximum investment through joint account: Rs 9 lakh
Annual interest: Rs 66,600
Monthly interest: Rs 5550
MIS: Scheme can be extended even after maturity
The maturity of the monthly income scheme is 5 years, but after 5 years it can be extended according to the new interest rate. Under the scheme, you are getting better returns as compared to bank FD. If you do not want to continue in the scheme after 5 years, your entire deposited amount will be refunded.
On closure of premature scheme
(i) No deposit amount can be withdrawn before the expiry of 1 year from the date of deposit.
(ii) If the scheme is closed after 1 year and before 3 years from the date of account opening, an amount equal to 2% will be deducted from the principal amount and the remaining amount will be paid.
(iii) If the scheme is closed after 3 years and before 5 years from the date of account opening, a deduction equal to 1% of the principal amount will be made and the remaining amount will be paid.
(iv) The account can be closed prematurely by submitting the prescribed application form along with the passbook in the concerned post office.
(Source: India Post, Calculator)
