POMIS (The Post Office Monthly Income Scheme) is a trusted savings option offering steady monthly income with attractive interest rates. Here’s a detailed look at the scheme, including the investment requirements for earning Rs 7,000, Rs 8,000 and Rs 9,000 monthly.

POMIS: Key features:

Interest Rate: Effective January 1, 2024, POMIS offers a 7.4% annual interest rate, payable monthly.

POMIS: Investment Limits:

Single Account: Maximum deposit limit of Rs 9 lakh.

Joint Account: Maximum deposit limit of Rs 15 lakh (shared equally among up to three holders).

Minimum deposit: Rs 1,000, in multiples of Rs 1,000.

POMIS: Eligibility

Single adult or joint accounts (up to three adults).

Guardians for minors or individuals of unsound mind.

Minors aged 10 or above can open accounts in their own name.

POMIS: Premature closure

Withdrawal is not permitted within the first year.

POMIS: After an year

1–3 Years: 2% deduction on the principal amount.

3–5 Years: 1% deduction on the invested amount.

Premature closure requires submission of a form and passbook.

POMIS: Maturity period

The account matures after five years. Upon the account holder’s death, the nominee or legal heirs can claim the balance along with applicable interest.

POMIS: Tax implications

Interest earned under POMIS is taxable as per the depositor’s income slab.

POMIS: Investment calculations for monthly income

To achieve specific monthly payouts, here’s how much you need to invest in POMIS:

For Rs 7,000 per month: An investment of Rs 11,40,000 can produce a monthly income of Rs 7,030, approximately.

For Rs 8,000 per month: An investment of Rs 12,98,000 can produce a monthly income of Rs 8,017, approximately.

For Rs 9,000 per month: An investment of Rs 14,60,000 can produce a monthly income of Rs 9,003, approximately.

POMIS: Secured investment

The Post Office Monthly Income Scheme is a Government-backed scheme that offers guaranteed returns and low-risk investment opportunities. With automatic credit options to savings accounts, it’s an easy source of income especially for retirees and those expecting fixed monthly earnings.

By investing systematically in POMIS, you can secure a steady income while making sure that the safety of your principal.