Post Office MIS
1. Post Office Monthly Income Scheme (POMIS):
POMIS is a savings scheme offered by India Post, the postal department of the Government of India. It provides a fixed monthly income to investors who deposit a lump sum amount for a fixed period.
2. Distinctive Benefits of the Post Office Monthly Income Scheme (MIS):
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Steady Monthly Income:
POMIS provides a fix and steady monthly income to investors. The interest is pay out monthly, making it suitable for those looking for a regular income stream.
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Low Risk:
POMIS is recognizE a low-risk investment option because it is supported by the government of India. The principal amount invested is secure, and the interest rate is fix.
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Guaranteed Returns:
The interest rate on POMIS is fix at the time of investment and remains constant for the entire tenure. This provides investors with a clear idea of the returns they can expect.
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Ease of Investment:
Investing in POMIS is simple and can be done at any post office. The minimum investment amount is relatively low, making it accessible to a wide range of investors.
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No Market Fluctuations:
Unlike market-linked investments such as stocks or mutual funds, POMIS is not subject to market fluctuations. The returns are not dependent on the performance of the stock market.
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Tax Benefits:
While the interest earn from POMIS is taxable, the scheme does not offer any tax benefits. Investors should consider their tax liabilities when opting for this scheme.
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Flexible Investment Period:
POMIS has a fixed maturity period of 5 years. At the end of the tenure, the invested amount is return to the investor along with the final interest payment.
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Nomination Facility:
Investors in POMIS can nominate a person who will receive the investment amount in case of the investor’s demise. This nomination facility adds an element of financial security.
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Availability in Rural Areas:
The Post Office Monthly Income Scheme is available in both urban and rural areas, making it accessible to people across different regions.
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No Maximum Limit on Investment:
While there is a minimum investment amount, there is no maximum limit on the investment in POMIS. This allows investors to invest according to their financial capacity.
Visit for more information: https://www.indiapost.gov.in/vas/Pages/IndiaPostHome.aspx
3. FAQ’s on Post Office Monthly Income Source (MIS)
1. Who is eligible to invest in POMIS?
Ans: Any individual can invest in POMIS, either singly or jointly. It is also available for minors, but the account must be operate by a guardian.
2. What is the tenure of the POMIS account?
Ans: The POMIS account has a fix tenure of 5 years.
3. What is the minimum and maximum investment allow in POMIS?
Ans: The minimum investment in POMIS is Rs. 1,500, and the maximum investment for a single account is Rs. 4.5 lakh, while for a joint account, the maximum limit is Rs. 9 lakh.
4. What is the interest rate on POMIS?
Ans: The government determines the interest rates for POMIS, and these rates may undergo adjustments. The interest is paY monthly and is taxable. It is important to check the current interest rates before investing.
5. Is the interest earn on POMIS taxable?
Ans: Yes, the interest earn on POMIS is taxable, and TDS (Tax Deduct at Source) is applicable.
6. Can the POMIS account be prematurely close?
Ans: Yes, the POMIS account can be prematurely closed after one year but before three years, subject to certain conditions. If close after three years, there is a penalty on the interest.
7. Can the investment be extend after the maturity period of 5 years?
Ans: Yes, the investment can be extend for a block of 5 years after the maturity period.
8. Is the POMIS account transferable between post offices?
Ans: Yes, the POMIS account can be transfer from one post office to another.
9. Is there a nomination facility for POMIS?
Ans: Yes, investors can nominate someone to receive the maturity amount in case of their demise.
10. Can NRIs (Non-Resident Indians) invest in POMIS?
Ans: No, POMIS is not available for NRIs.