Post Office MIS Scheme:- The Post Office Depository Service provides a large range of fixed-return investment schemes. The sovereign guarantee, which means that this investment avenue is supported by the government, is attached to all of these schemes. As a result, these investment schemes are more secure than many fixed-income and equity share options.
With an interest rate of 7.4%, the Post Office Monthly Income Scheme is one of the highest-earning programs, along with the Post Office Savings Account, Post Office Recurring Deposit, and Post Office Time Deposit. As the name implies, interest is paid out on a monthly basis under this scheme. The Ministry of Finance has approved and recognized this plan, just like it has other post office schemes.
- Budget 2023-24: An increase of Rs. 4.5 lakh to 15 lakh for a joint account is made to the maximum deposit limit for the monthly savings scheme.
- Financial transactions and deposits have always been safe at the Post Office, just like at any other nationalized bank. For the elderly population in particular, this is true. Every Post Office branch in the nation offers a variety of savings plans.
- Investing a set amount and earning a fixed interest each month is possible with the Post Office Monthly Income Scheme (POMIS). Investing in this is possible from any post office, as the name implies. We’ll talk about the following POMIS components in this article.
The Ministry of Finance has approved the Post Office Monthly Income Scheme (POMIS) as an investment plan. With an interest rate of 6.6%, it is among the schemes with the highest earnings. This plan pays interest on a monthly basis. Individuals can invest a suitable amount based on affordability after opening a POMIS account; the minimum investment amount should not be less than ₹15,000. An investor can deposit money each month and receive interest from MIS at the post office based on their applicable monthly rate. It offers low-risk and consistent income. The relevant post office provides the monthly income from the investment.
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- Capital Protection: The return is secure because the government supports it.
- Low-risk Investment: There is no market capitalization risk associated with online post office monthly income schemes.
- Lock-in Period: After maturity, funds are locked in for a minimum of five years during which they cannot be withdrawn.
- Reasonably priced Premium Amount: In comparison to other plans, the monthly premium is inexpensive and simple to pay.
- Inflation-Proof: An investor can continue to receive monthly income even in the face of inflation.
- Multiple Fund Owners: As joint holders, multiple owners may own a single account.
- Ease of Transaction: Making deposits and withdrawals of money is a very simple process.
- Ideal for Investors Who Are Risk Averse For investors who are risk averse and seek monthly income, the Post Office Monthly Income Scheme is the most suitable option.
- For those seeking steady income and long-term investments, it is advantageous. In the case of senior citizens, it is the best plan.
- An Indian citizen is required for the application.
- Indian residency is a requirement for the applicant.
- A minimum of eighteen years old is required of the candidate.
Note:- Please take note that if a minor is 10 years old or older, you may open an account on their behalf. The fund will become available to children upon their 18th birthday. When a minor reaches the age of majority, he must ask to have the account converted to his name.
Features & Benefits of the Post Office MIS Scheme
- Capital protection: Because this program is supported by the government, your money is secure until maturity.
- Tenure: Post Office MIS is locked in for a period of five years. When the scheme matures, you can either withdraw or reinvest the amount you invested.
- Low-risk investment: Your money is safe and protected from market fluctuations because it is invested in a fixed-income scheme.
- Affordably large deposit: A small initial investment of Rs. 1,000 can be your starting point. You can invest multiples of this amount, depending on what you can afford.
- Requirements no longer exist: each month, you receive interest payments. In comparison to other fixed-income investments such as FDs, the returns are higher but still do not outpace inflation.
- Tax efficiency: TDS is not applicable, and Section 80C does not cover your investment.
- Compensation: The payment will be made one month following the initial investment, rather than at the start of each subsequent month.
- You have the ability to open multiple accounts in your name. However, the entire deposit amount across all of them cannot be more than Rs. 9 lakhs.
- Account joint: Up to three individuals can open a joint account. The maximum amount that can be invested in this account is Rs. 15 lakhs overall.
- Transfer of funds: The investor may choose to move the funds to a recurring deposit (RD) account, which is a new offering from the Post Office.
- Nominee: Should the investor pass away within the account’s term, they may designate a beneficiary (a member of their family) to receive the benefits and corpus.
- Simple money/interest transactions: You can opt to have your monthly interest automatically transferred to your savings account or collected directly from the post office. Another profitable option is to reinvest the interest in a SIP.
Eligibility criteria to open a Post Office MIS Scheme account
- Open POMIS accounts are only available to Indian residents.
- Benefits from this scheme are not available to NRIs.
- To create a POMIS account, an adult can.
- Anyone over the age of ten may open an account on their behalf. Once they reach the age of 18, they can access the fund.
- A minor must request that the account be converted to his name after he reaches the majority.
|Maximum Deposit Amount Allowed
|Rs. 9 lakhs
|Joint Account (2 or 3 adults)
|Rs. 15 lakhs
Other Benefits of the Post Office MIS Scheme
- The date of cheque realization when using a cheque to open an account will coincide with the account opening date.
- Each account holder will own an equal share in a joint account.
- There is no cap on the number of POMIS accounts owned jointly or singly. based on the maximum cumulative balance requirements
- A minor may open a Post Office Monthly Income Scheme Account if they are ten years of age or older. He or she will be required to change their minor account to an adult account upon turning eighteen.
- Monthly interest-bearing Post Office Monthly Income Scheme accounts are available to investors for up to two years following account maturity, provided that the investor does not withdraw the proceeds. Post office credits are paid directly to the investor’s post office savings account by ECS/CBS. The rate that applies will be identical to that of a regular savings account with the Post Office.
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Current Interest Rates on Post Office MIS Scheme
The Central Government and Finance Ministry set and reset the interest rate on a quarterly basis based on the returns on government bonds with the same maturity. October through December of 2023 will see an interest rate of 7.4% for the Post Office Monthly Income Scheme. The historical Post Office MIS Interest Rates are as follows:
|Interest Rate on Post Office MIS Scheme (annual)
|1st July 2023 – 30th September 2023
|1st April 2023 – 30th June 2023
|1st January 2023 – 31st March 2023
|1st October 2022 – 31st December 2022
|1st July 2022 – 30th September 2022
|1st April 2022 – 30th June 2022
|1st April 2021 – 31st December 2021
|1st April 2018 – 30th June 2018
|1st January 2018 – 31st March 2018
|1st October 2017 – 31st December 2017
|1st July 2017 – 30th September 2017
|1st April 2017 – 30th June 2017
How to open a Post Office MIS Scheme Account
It’s not as hard as you might think to open a POMIS account. Please review the step-by-step process rather than picturing lengthy lines and even longer paperwork.
- If you haven’t already, open a savings account at the post office.
- Get an application for POMIS from your local post office.
- At the post office, turn in the completed form, two passport-sized photos, a photocopy of your ID, and proof of residency. Remember to bring the originals for confirmation.
- Obtain the witness’s or nominees’ signatures on the document.
- Make the first payment with a cheque or cash. If a cheque is post-dated, the account opening date will be the date printed on the cheque.
- The Post Office executive will provide you with the specifics of your recently opened account after the processing is complete.
Consequences of early withdrawal
|Time of POMIS withdrawal
|Outcomes of premature withdrawal
|Before completing one year
|Between 1st and 3rd year
|The entire deposit was refunded after deducting a 2% penalty
|Between 3rd and 5th year
|The entire corpus refunded with a 1% penalty
How Does it Work- POMIS Calculation
- Upon opening the account, investors must make the appropriate investments. The minimum and maximum amounts of investment for a single account are Rs. 1,000 and Rs. 9,00,000, respectively.
- The minimum and maximum investments for a joint account are Rs. 1,000 and Rs. 15,00,000, respectively.
For an example:-
You put in a Rs. 1,000,000 investment with a 5-year maturity period. With an annual percentage rate of 6.60%, a fixed monthly income of Rs. 550 is obtained. Additionally, your deposited funds will be returned to you at the conclusion of the scheme.
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Q. How can I withdraw money from my POMIS account after the tenure?
Ans- The money that was deposited into the account can be withdrawn from the post office or credited to your savings account via ECS. You can withdraw the money on a monthly basis in a standard manner. The investor may, nevertheless, choose to let some money build up and then remove it all after a few months.
Q. Can I transfer the POMIS account?
Ans- Yes, you can transfer your account for free from one post office to another.
Q. Is there any Tax deduction at source?
Ans- The Tax Deduction at Source (TDS) is not present. On the other hand, the interest is taxable.
Q. Is there any nomination facility available in POMIS?
Ans- Tax Deduction at Source, or TDS, does not exist. Nonetheless, the interest received is taxable.
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