Budget 2023–24: For a single account and a joint account, respectively, the maximum deposit limits for the monthly savings scheme are increased from 4.5 lakh rupees to 9 lakh rupees and from 9 lakh rupees to 15 lakh rupees.
The Post Office has always been a trustworthy location for deposits and financial transactions, just like every nationalised bank. The elderly are most affected by this. A variety of savings products are offered at Post Office locations across the nation.
One such scheme that enables you to invest a specific amount and receive a fixed interest payment each month is the Post Office Monthly Income Scheme (POMIS). You can invest in this at any post office, as the name implies. We'll discuss the following POMIS features in this article:
A Plan to Increase Monthly Postal Revenue
One of the many financial goods and services that Post Office offers under the jurisdiction of the Finance Ministry is POMIS. So, it is quite reliable as a result. It produces consistent revenue and is a low-risk MIS.
Up to Rs. 9 lakh (individually) or Rs. 15 lakh (over a 5-year period) may be invested (jointly). Capital protection is its main objective. Interest shall be payable monthly and shall accrue at the rate of 7.10% per annum for the months of January through March 2023.
For instance, Mr. Kohli invested Rs. 9 lakh through the post office every month for five years. The interest rate, which was already specified, is 7.10% p.a. At that point, he will receive Rs. 5,325 per month. He has the option of taking the Rs. 9 lakh deposit out in person from any post office or having it electronically transferred to his savings account when it matures. The account renewal option is different.
Financial security are some of the advantages and features of the Post Office Monthly Income Program. The government's sponsorship of this programme ensures that your money will be secure until it matures.
Lock-in: the Postal MIS's five-year lock-in period. After the programme is over, you can either withdraw or reinvest the money you deposited.
Risk-free investment Your money is quite safe and is not at danger from market swings because it is a fixed income plan.
low initial investment costs Only $1,000 is required as a down payment to get started. Depending on your financial situation, you might be able to invest more than this sum.
Assured profits Each month, interest payments are made to you. While not outpacing inflation, the returns are higher than those of other fixed-income investments like FDs.
Tax efficiency: Because neither Section 80C nor TDS apply to your investment, it is not tax deductible.
Payment: Rather than at the start of each month, the dividend will be paid out one month after the initial deposit.
You are permitted to create numerous accounts in your name. The total combined deposit amount in each of them, however, cannot be more than Rs. 9 lakhs.
Joint account: Two or three people can open a joint account. In this instance, a maximum of Rs. 15 lakhs can be deposited into this account overall.
Transfer of funds: Investors can transfer money to recurrent deposit (RD) accounts via a system that The Post Office has set up.
Beneficiary: In the event that an investor passes away while the account is open, they can choose a beneficiary (a family member) who will be entitled to the rewards and corpus.
You can choose to have the post office automatically credit your savings account with the monthly interest, which is convenient. Reinvesting interest in a SIP can be quite beneficial.
Reinvestment: To continue enjoying the benefits when the corpus reaches maturity, you may reinvest it in the same programme for an additional five-year block.
qualifications to open a POMIS account
A POMIS account can only be opened by Indian citizens.
This programme is not profitable for NRIs.
A POMIS account can be created by any adult.
Anybody 10 years of age or older may open an account on behalf of a minor. Once they reach the age of 18, kids are allowed to use the money.
A minor must request that the account in his name be converted once he reaches the age of majority.
The maximum deposit allowed in a single account is 9 lakh rupees.
Joint Account: Rs. 15 lakh (2 or 3 adults).
Procedures for Opening a POMIS Account
It's less complicated than you would imagine to open a POMIS account. Please consider the step-by-step process rather than envisioning lengthy lines and even longer paperwork.
If you don't have a post office savings account already, you should open one.
Pick up a POMIS application at the post office.
Submit the completed application, a copy of your identification, documentation of your address, and two passport-sized pictures to the post office. For verification, bring the originals with you.
Collect the application's signatures from the witnesses and nominees.
The deposit can be paid in cash or by check. The date shown on a post-dated cheque will be the day the account was opened.
The Post Office worker will give you the specifics of your newly opened account once the processing is complete.
Consequences of a premature withdrawal
POMIS's pullout date the effects of a withdrawal too soon
There are no perks prior to the first year.
The entire deposit is repaid between the first and third years, less a 2% penalty.
third to whole corpus refund with a 1% penalty
Frequently Asked Questions on POMIS
Who invests in POMIS?
POMIS provides the adaptability and dependability that draw risk-averse investors despite its limited tax advantages. If you believe you fall into such category, you should think about commencing one right away.
Query and Response
How is the individual account holder's portion computed in the case of a joint account?
Each joint account holder will receive an equal share from each joint account.
What if, at account maturity, I opt not to withdraw the deposit amount?
Your deposit money will stay in the account for an additional two years and continue to earn simple interest in accordance with Post Office Savings Account regulations if you don't withdraw it when it matures.
Does this programme suit senior citizens?
Yes. Since they can deposit their entire life savings into the account and receive interest to fund their monthly expenses, seniors would benefit from this service.
If I had to move due of my employment, what would happen to my account?
Transferring your POMIS account to the Post Office in the new city if you relocate there is easy and cost-free.
What is the investment cap for POMIS in 2023?
According to POMIS, the maximum deposit amount for a single account is 9 lakhs, while the maximum deposit amount for a combined account is 15 lakhs.