The Post Office Monthly Income Scheme (POMIS) is a Government of India backed small savings scheme that allows the investor (s) to set aside (save) a specific amount every month. Subsequently, interest is added to this investment at the applicable rate and paid out to the depositor(s) on a monthly basis.
The interest rate of POMIS in Q2 FY18-19 is 7.3% , while the revised rate for Q3 FY18-19 is 7.7%. The following are the historical Post Office MIS Interest Rates* :
|Period||Interest Rate on Post Office MIS (annual)|
|1st April 2018 – 30th June 2018||7.3%|
|1st January 2018 – 31st March 2018||7.3%|
|1st October 2017 – 31st December 2017||7.5%|
|1st July 2017 – 30th September 2017||7.5%|
|1st April 2017 – 30th June 2017||7.6%|
*Rates subject to change as per government notification. Interest payout on POMIS occurs monthly.
Key Features of Post Office Monthly Income Scheme
- Effective 1st December 2011, maturity period of the scheme is 5 years (60 months) from account opening date.
- POMIS account can be held individually or jointly (max. three adult holders).
- Minimum Rs. 1500 required for account opening. Higher amounts in multiples of Rs.1500.
- On use of cheque for account opening, date of cheque realization will be account opening date.
- In case of joint account, each account holder will hold equal share.
- Nominee facility available and can be updated later after opening account.
- POMIS account can be freely transferred from one Post Office to another.
- No limit on number of POMIS accounts held singly/jointly. Subject to max. cumulative balance criteria.
- Cumulative maximum balance across all sole operated POMIS accounts is Rs. 4.5 lakhs. For jointly held accounts, maximum POMIS balance limit is Rs. 9 lakhs.
- A minor aged 10 years or above can avail the Post Office Monthly Income Scheme Account. On turning 18 years, he or she will be asked to convert his/her minor account to an adult account.
- The Post office credits proceeds directly to the investor’s post office savings account on monthly basis by ECS/CBS.
- No bonus available on accounts opened on or after 1st December 2011. Accounts opened earlier were eligible for 5% bonus on deposit amount.
- Post Office Monthly Income Scheme does not offer any tax rebate on the investments or maturity amount.
- Post Office Monthly Income Scheme account can continue to earn interest for up to 2 years after account maturity if proceeds are not withdrawn by the investor. The applicable rate will be the same as that of a standard Post Office savings account.
- Identity Proof: Copy of government issued ID such as Passport / Voter ID card / Driving License/Aadhaar, etc.
- Address Proof: Government issued ID or recent utility bills.
- Photographs: Passport size photograph.
Premature Withdrawal of the Scheme
Premature withdrawal /closure of POMIS account before maturity period (5 years) is allowed subject to following terms and conditions:
- In case of premature withdrawal between 1 to 3 years of account opening, 2% discount on deposit is applicable.
- In case of premature withdrawal between 3 to 5 years of account opening, 1% discount on deposit is applicable.
Maximum Investment Amount in Post Office MIS
Though there is no limit on the number of accounts held by individual, there are limits on the maximum amount that can be cumulatively invested across all POMIS accounts.
- In case of sole operated account, maximum investment allowed in POMIS is Rs.4.5 lakhs.
- In case of joint holders (up to 3 joint holders), maximum of Rs.9 lakhs can be invested in POMIS.