Post office monthly scheme is a government-backed savings scheme designed to provide fixed monthly income from a lump sum investment. This scheme is opened with a minimum deposit of Rs 1,000, with multiples of Rs 1,000. The maximum limit for deposit is Rs 9 lakh in a single account and Rs 15 lakh in a joint account.
Eligibility
The eligibility for this scheme is based on common standards that can be applied to other schemes. Common eligibility rules including individual to be an Indian citizen, a guardian on behalf of a minor or a person of unsound mind, and a minor who has reached the age of 10 years.
Savers can open two types of joint accounts, that is-
- Joint account A, which is operated by all depositors jointly
- Joint account B, which is operated by any of the depositors
Monthly income feature
POMIS offers a fixed amount of monthly income to holders. A fixed amount of monthly income can be vital at the time of retirement. The scheme provides a fixed monthly income to investors through periodic interest payments on a one-time deposit made at the time of account opening.
Interest rate
Post Office monthly income scheme offers an interest rate of 7.4 per cent, which is one of the highest interest-offering schemes backed by the government. The depositor can withdraw money from the account after one year of the date of opening. Depositors have to claim the interest, which is payable every month; otherwise, there will be no additional interest earned.
Low-risk investment
Post office monthly scheme offers a low-risk investment, thus acting as an instrument to earn chunks of money. The returns in this scheme are not associated with market trends. Individuals seek a secure investment option with regular monthly returns.
Safe and simple process
POMIS is very simple to operate and handle. It can be opened through any post office in India. It is easy to manage because it doesn’t bring any complexities, and it also offers flexible transfer services. POMIS accounts can be transferred across any post office in India.
Maturity and premature closure
The account can be closed at any time after five years; however, depositors can also close their account before the maturity date. After the expiry of the first year, the depositor can close their account; however, if closed after 3 years, then an amount equal to 2 per cent is deducted, and if closed after 3 years, then an amount equal to 1 per cent is deducted. The total tenure of the scheme is 5 years.
