The Post Office Monthly Income Scheme (POMIS) is a government-backed investment option administered by the Ministry of Finance. Designed to provide a steady monthly income, this low-risk scheme offers attractive returns with interest disbursed every month. Investors can start with a minimum deposit of ₹1,500, and the scheme offers flexible investment limits for single, joint, or minor accounts. The scheme is particularly popular among risk-averse investors and senior citizens looking for regular income.
Features of the Scheme
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Maturity Period:
The maximum tenure of POMIS is 5 years. Funds are locked in for this period and can only be withdrawn upon maturity. -
Account Holders:
A POMIS account can have between 1 and 3 holders. Joint accounts allow multiple individuals to benefit from one account. -
Nomination Facility:
Investors can nominate a beneficiary who will receive the account benefits after the investor’s demise. Nomination details can be updated later. -
Transferability:
The account can be transferred from one post office to another anywhere in India. -
Bonus Facility:
Accounts opened before 1st December 2011 receive a 5% bonus. Newer accounts do not have this bonus. -
Tax Benefits:
Income from POMIS is exempt from tax deduction at source (TDS) and provides tax-free returns.
Benefits
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Capital Protection:
Being government-backed, the investment is secure. -
Low-risk Investment:
POMIS is an ideal option for conservative investors as it involves minimal risk. -
Steady Monthly Income:
Interest is credited every month, providing regular income. -
Affordable Premium:
With a low minimum deposit, the scheme is accessible to a wide range of investors. -
Inflation Resistance:
The monthly income helps to mitigate the impact of inflation on your purchasing power. -
Multiple Fund Owners:
Joint accounts are available, making it easier for families or partners to invest together. -
Ease of Transaction:
Deposits and withdrawals are straightforward, ensuring hassle-free transactions.
Investment Details
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Interest Rates:
- For a 1-, 2-, or 3-year tenure, the interest rate is 5.50% per annum.
- For a 5-year tenure, the rate is 7.6% per annum.
- Note: For senior citizens, the scheme typically offers an interest rate of 6.6%.
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Deposit Limits:
- Single Account: Minimum ₹1,500; Maximum ₹4,50,000
- Joint Account: Minimum ₹1,500; Maximum ₹9,00,000
- Minor Account: Minimum ₹1,500; Maximum ₹3,00,000
Example: An investment of ₹1,00,000 for 5 years at 7.6% per annum (or at 6.6% for senior citizens) would yield a fixed monthly income as determined by the scheme’s calculations.
Eligibility
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Citizenship and Residency:
The applicant must be a citizen of India and reside in India. -
Age Requirement:
The investor must be at least 18 years old.
Note: An account can be opened on behalf of a minor (aged 10 years or older). Once the minor reaches 18, the account must be converted to a regular account in their name. -
Non-Applicability to NRIs:
The scheme is not available to non-resident Indians.
Application Process
Offline Process:
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Post Office Savings Account:
Ensure you have a Post Office savings account. If not, open one. -
Obtain the Application Form:
Visit your local post office or download the POMIS account application form from the official link: Post Office Account Opening Form. -
Complete the Form:
Fill in the form with all required details and attach self-attested copies of the necessary documents. Remember to mention nominee details (Name, DOB, Mobile Number). -
Initial Deposit:
Make an initial deposit (minimum ₹1,000) via cash or cheque. -
Verification:
Submit the form along with the original documents for verification at the post office.
Documents Required
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Proof of Identity:
Government-issued ID such as Passport, Voter ID, Driving License, Aadhaar Card, etc. -
Proof of Address:
Recent utility bills (electricity, telephone), property tax receipt, or a copy of the Aadhaar/Passport. -
Photographs:
Passport-sized photographs.
Frequently Asked Questions
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How can I withdraw money from my POMIS account after the tenure?
Withdrawals are made at the post office after the completion of the 5-year lock-in period. -
Can I transfer my POMIS account?
Yes, the account can be transferred between post offices anywhere in India. -
Can I reinvest my accumulated amount in POMIS?
You can choose to reinvest or withdraw the matured amount. -
Is there any Tax Deduction at Source (TDS) on the interest?
No, the income from POMIS is exempt from TDS. -
Is a nomination facility available in POMIS?
Yes, a nominee can be assigned, and only the nominee will receive the benefits in case of the investor’s demise. -
Does the scheme offer any tax rebate?
No, the scheme is tax-free, meaning there is no tax rebate applicable. -
Can senior citizens invest in POMIS?
Yes, it is a popular scheme among senior citizens due to its steady monthly income. -
From where can I get the withdrawal form?
Withdrawal forms are available at your local post office. -
What happens if I do not withdraw the funds after 5 years?
The funds will mature after 5 years, and you can then choose to withdraw or reinvest.