The Post Office Monthly Income Scheme (POMIS) is a savings scheme offered by India Post that provides investors with a regular monthly income.
POMIS is a low-risk investment option with a fixed interest rate and tenure of 5 years. The scheme is particularly attractive to retired, old citizens and those seeking a regular monthly income with low risk.
Key Features of POMIS:
- Interest Rate: Currently, the interest rate for POMIS is 7.4% per annum (April-June 2024), payable monthly.
- Minimum Investment: The minimum investment amount is Rs.1,000, and investments can be made in multiples of Rs. 1,000.
- Maximum Investment: The maximum investment limit is Rs.9 lakh for a single account and Rs.15 lakh for a joint account.
- Eligibility: Resident Indian individuals, including minors above 10 years (with a guardian), can open a POMIS account.
- Joint Account: Up to three adults can jointly open a POMIS account.
- Nomination Facility: The account holder can nominate a beneficiary to receive the amount in case of their demise.
- Premature Closure: Premature closure is allowed after one year with a penalty deduction.
Benefits of POMIS:
- Regular Monthly Income: POMIS provides a steady monthly income, making it ideal for retirees or those seeking a regular income stream.
- Guaranteed Returns: The interest rate is fixed for the entire tenure, ensuring guaranteed returns.
- Low Risk: It is a government-backed scheme, making it a low-risk investment option.
- Easy to Open and Operate: POMIS accounts can be easily opened at any post office, and the operation is simple.
How to Open a POMIS Account:
- Visit your nearest post office.
- Fill out the POMIS application form.
- Submit the required documents (identity proof, address proof, and passport-size photographs).
- Make the initial deposit.
POMIS Interest Calculation Example:
If you invest Rs. 9 lakh in a POMIS account, you will receive a monthly interest of Rs. 5,550 (7.4% per annum divided by 12 months).
Important Note: The interest rates for POMIS are revised quarterly, so it’s essential to check the latest rates before investing.
Conclusion: POMIS is a safe and reliable investment option that provides a regular monthly income. If you are looking for a low-risk investment with guaranteed returns, POMIS can be a suitable choice.