Post Office Monthly Income Scheme (POMIS)

The post office is one of the primitive and most relevant institutions for financial transactions. It provides exclusive schemes and offers to save money. Post Office Monthly Income Scheme (POMIS) is an investment scheme that provides fixed interest or income every month.

Therefore, to guide you on how and why to opt for POMIS, we have mentioned all details.

What Is POMIS?

Post office depository service is a host of banking products under the purview of the Finance Ministry, which offers a wide assortment of schemes. Post Office MIS interest rate 2021 is 7.6%, i.e. highest among other schemes.

It provides low risk and steady income where an investor can deposit every month and get interest of MIS in the post office according to their applicable monthly rate. The income on investment is given by the concerned post office every month.

After opening a POMIS account, individuals can invest a suitable amount based on affordability, which, however, should not be less than ₹ 1500.

The invested amount will be returned at the end of scheme duration as per Post Office Monthly income scheme interest rate 2021.

What Are the Features of POMIS?

Features of POMIS scheme are as follows -

Maturity period- The maximum tenure of Indian post office monthly income scheme is 5 years.
Number of holders- At least 1 and at most 3 individuals can hold post office MIS.
Nomination- Only the nominee will get all scheme benefits after the investor’s demise. Nominee can be assigned later on after opening an account.
Transfer- Individuals can transfer their MIS account in one post office to another anywhere in India.
POMIS bonus- Accounts opened after 1st Dec 2011 have no bonus facility. However, those opened before that enjoy a 5% bonus.
Taxability- Any income from this scheme does not come under TDS or tax deduction. The post office monthly income scheme tax benefit is zero.

Current Interest Rates Under POMIS

Following is a table enlisting the current interest rates available under the POMIS scheme.

Have a look!

Duration in Years	Interest Rate
1	5.50%
2	5.50%
3	5.50%
5	7.6%

Followings are details of investment -

Single Account - the minimum amount to deposit is ₹ 1500 and maximum ₹ 4,50,00.
Joint Account – the minimum amount of investment is ₹ 1500 and maximum is ₹ 9,00,000.
Minor Account - the minimum amount of investment is ₹ 1500 and maximum is ₹ 3,00,000.

For instance, if an investor invests ₹ 1,00,000 for 5 years with a monthly interest of 6.60%. Fixed monthly income according to the post office MIS scheme will be ₹ 550.

Post office monthly income scheme for senior citizens is 6.6%.

The minimum lock-in period for the post office monthly income scheme 2021 is 5 years.

What Are the Benefits of POMIS?

The post office monthly income scheme benefits are -

Capital Protection- As the Government backs it, the return is safe.
Low-risk Investment- Post office monthly income schemes online have no risk involved in market capitalisation.
Lock-in Period- Minimum 5 years is the lock-in period which can be withdrawn after maturity.
Affordable Premium Amount- The premium per month is low compared to other schemes and easily payable.
Unbeatable by Inflation- Even during inflation, an investor can get income monthly.
Multiple Fund Owners- Multiple owners can own one account as joint holders.
Ease of Transaction- The transaction of money, including deposit, withdrawal is very easy.
Good for Risk-averse Investors- Post Office Monthly Income Scheme is the best scheme for risk-averse investors and wants monthly income. It is favourable for those looking for long term investment and regular income. For senior citizens, it is the best plan.

Scheme, duration, interest rate, withdrawal process are extremely favourable for investors with low-risk appetites. Interest in MIS in the post office is the highest and safest, thus justifying its high demand.

Frequently Asked Questions

✓ How is monthly income from POMIS given in the case of joint account holders?

In the case of joint account holders, the monthly income is distributed equally and transferred to individual accounts.

✓ If money is not withdrawn after the maturity of POMIS, then what happens to the amount?

If money is not withdrawn upon maturity from the Post Office Monthly Income Scheme, the amount remains in the specific account for two years and earns simple interest.