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Smart and informed investment decisions are a great way to grow your corpus and secure your financial future. Among the many investment options available, the Post Office Monthly Income Scheme (POMIS) is one of the safest options.

 

POMIS, a scheme recognised and approved by the Ministry of Finance, offers security for your investments. It enables you to invest funds into an account and earn fixed monthly interest payments. Post Office Monthly Income Scheme interest rate is one factor that impacts your earnings.

 

To understand how you can make the most of your investment with postal MIS, scheme benefits and features, read on.

Interest Rates of Post Office Monthly Income Scheme

For Jan-March 2023, the POMIS interest rate is 7.10%, making it one of the highest return-generating schemes. Additionally, investing in the postal monthly income scheme is simple. All you have to do is visit a post office near you and open an account. 

 

The Central Government and Finance Ministry set the interest rate of Post Office MIS every quarter. Here are previous Post Office MIS scheme interest rates:

Period

POMIS Interest Rates (p.a)

Oct-Dec 2022

6.70%

July-Sept 2022

6.60%

April-June 2022

6.60%

April -Dec 2021

6.60%

The effective Post Office MIS scheme rate is set every three months based on the yields of the same-term government bonds. Unlike some investment instruments, the interest rate of the Post Office MIS scheme for senior citizens and non-senior citizens is the same. The previous rates are available on the official India Post website. 

 

Your interest earnings are calculated based on the investment amount, prevailing interest rate, and other factors. Furthermore, interest earned is not subject to TDS. However, you must pay taxes on the interest income. The interest earned is paid out every month.

 

You can also choose the automatic withdrawal transfer option offered by the POMIS. Your earnings are automatically transferred to your savings account through Electronic Clearing System (ECS) or Post-Dated Cheques (PDCs).

 

You also have the option to reinvest the maturity amount into the same POMIS scheme. Your account will continue to collect interest for up to 2 years at the applicable POMIS rate even without reinvestments or withdrawals.

Features and Benefits of the POMIS Scheme

The following are the key features and benefits of a Post Office Monthly Income Scheme:

  • Low-Risk Term Investment: 

The Post Office MIS is a secure, risk-free avenue for investment. The fixed interest on post office MIS ensures stable monthly income payments. Moreover, it has a 5-year lock-in term (60 months) with a reinvestment option to give you flexibility. 

  • Minimum & Maximum Required Amount: 

The Post Office MIS plan has a minimum deposit requirement of ₹1,000.

The following is the maximum amount that may be deposited into the Post Office MIS plan:

Account Type 

Maximum Investment Limit

Single Account

₹4.5 Lakhs

Joint Account

₹9 Lakhs

Minor Account

₹3 Lakhs

  • Facility of Joint Account: 

Residents of India who are at least 10 years old can hold the account either individually or jointly. A joint account can only be held by three adults. The shares of each joint holder will also be equal.

  • Unlimited Accounts: 

There is no limit on the number of accounts you may want to open. There is, however, a cumulative balance amount cap. The maximum cumulative balance for all single accounts is ₹4.5 Lakhs, while that for joint accounts is ₹9 Lakhs.

  • Nomination & Transfer facilities: 

A nomination facility is available and can also be adjusted later by the beneficiary. The beneficiary, however, can only claim upon the account holder's demise. Moreover, you can also transfer your POMIS accounts between different Post Offices.

  • Auto Interest Withdrawal: 

You can automatically transfer your interest earnings from the prevailing POMIS interest rates to a savings account. This is done using the Electronic Clearing System (ECS) or Post-Dated Cheques (PDC).

  • Penalty on Premature Withdrawal: 

Premature withdrawals are permitted after one year. However, there is a penalty. For withdrawals made after three years but before five years, the penalty is 1%. Withdrawals made before three years but after one year are subject to a penalty of 2%. 

  • Taxation on the Earnings: 

The interest amount is not subject to TDS deduction. However, the income from the post office MIS scheme is taxable. The investment is also ineligible for section 80C tax concessions.

Process of Opening a POMIS Account 

To start your Post Office Monthly Income Scheme, follow the steps given below: 

 

  • Go to the nearest post office in your area and get the POMIS form

  • Fill out the application form accurately

  • Submit the required documents to complete the identity and address verifications

  • Enter the nominee information (if any) 

  • Proceed to make your first cash or check deposit (minimum of ₹1000/-)

Before you invest in POMIS:

 

  • Make sure you have a savings account with the post office.

  • If you do not have a savings account, open it with the post office where you want to open a POMIS account.

  • Carry the original documents for verification.

Eligibility and Document Requirements

Every Indian citizen who is a resident and above the age of 10 is eligible to open a POMIS account. POMIS is not available for Non-Resident Indians (NRIs). The following documents are required at the time of applying to open a POMIS account:

 

  • Two passport-sized recent photographs

  • Proof of address

  • Proof of identity documents with the original papers at the time of application. (Aadhar card, PAN Card, Vote ID, Passport)

Post Office Monthly Income Scheme Calculator

Today, there is a digital calculator for multiple investment instruments, including POMIS. The Post Office MIS interest rate calculator is available on the official website of various banks, NBFCs, and financial institutions. 

 

Like other return calculators, the POMIS calculator estimates the monthly interest that you earn by investing in POMIS. The results of the Post Office MIS calculator can be compared to other such monthly income schemes. 

 

Comparing the returns of the Post Office Monthly Income Scheme for senior citizens and non-senior citizens with other monthly income schemes will enable you to make an informed decision. It will also help ensure that you make the most of your investment. 

 

Whether you are a non-senior citizen or senior citizen, post office MIS calculator is convenient, easy, and quick. Just enter the investment amount and the current interest rate to get the results instantly. 

 

Before investing in any instruments or schemes, including POMIS, ensure that they align with your current and future financial needs. This will help ensure that you stay invested for the long haul and maximise your returns.

FAQs

  • ✔️What minimum amount do I need to invest in a Post Office Monthly Income scheme?

    The minimum investment amount for investing in POMIS is ₹1000.

  • ✔️How can I make withdrawals from my POMIS account after maturity?

    POMIS comes with multiple withdrawal options. The first is from the post office, and the second is to transfer the amount to your savings account through ECS.

  • ✔️Can I transfer my postal MIS account?

    Yes, you can transfer your Post Office Monthly Income Scheme account from one post office to another.

  • ✔️Can a senior citizen also invest in the Post Office Monthly Income Scheme?

    Yes. POMIS is one of the most suitable investment schemes for senior citizens. 

  • ✔️Is premature withdrawal allowed in POMIS?

    Yes, premature withdrawal is allowed in the POMIS. However, there is a penalty.

  • ✔️Can I get a loan from the Post Office Monthly Income Scheme?

    No, you cannot avail a loan against your POMIS account.

  • ✔️Which is the best monthly income scheme in the post office?

    The Post Office Monthly Income Scheme is among the best because of benefits like low minimum investment and high interest rates.