What is the Post Office Monthly Income Scheme?
The post office monthly income scheme is a small savings scheme offered by the Department of Posts, India, which provides a means of receiving a fixed monthly income for up to 60 months. The Govt of India backs this postal MIS scheme, which makes it a low-risk investment option offering an interest rate of 7.4% per annum. In this blog, we will discover more about the features and benefits of the post office monthly income plan and also learn who is eligible for this scheme.
The scheme enables investors to deposit a fixed sum of money every month for a period of 12 months, however, the tenure of the scheme is 60 months (5 years). After the investment tenure is over, the investor receives a lump sum payment along with the interest.
The Post Office Monthly Income Scheme is a safe and secure investment option and is ideal for those looking for a regular income stream. The scheme also offers tax benefits, making it an attractive investment option for many.
What is the Post Office Monthly Income Scheme?
The post office monthly income scheme, which offers individuals a regular income each month by investing in government securities, is open to all Indian residents aged 18 and above. It requires a minimum investment of Rs. 1000 with no maximum limit and lets individuals choose to receive their payments by cheque or direct credit into their bank account.
The scheme offers customers the opportunity to earn a fixed interest rate on their deposited funds. The interest rate is set at the time of deposit and remains fixed for the duration of the deposit term. The Post Office Monthly Income Scheme is a popular savings option for many Indians, as it offers a safe and secure way to grow their money.
This scheme provides stable returns, making it a low-risk investment option. The post office MIS scheme is an ideal investment for those who are looking for stability and security along with good returns.
Features of The Post Office Monthly Income Scheme
The Post Office Monthly Income Scheme is a savings scheme that offers attractive interest rates and the ability to withdraw your money at any time. The features of this scheme are as follows:
- Minimum investment: Rs. 1,000
- Maximum investment: Rs. 9 lakh in a single account & INR 15 lakh in the joint account
- Tenure: 5 years
- Interest rate: 7.4% per annum
- Mode of interest payment: Monthly
- Payout: Last day of every month
This scheme is a great way to save for your future and earn some extra income. If you are looking for a safe and reliable savings scheme, then the Post Office Monthly Income Scheme is a good option for you.
Account Opening Procedure
Any Indian citizen above the age of 18 is eligible to open an account under the postal monthly income scheme individually, jointly, or with a nominee facility. The account can also be opened by a minor who is above 10 years with a parent or guardian as the operative account holder. The minimum investment of Rs. 1000 has to be paid upfront, while the maximum investment of Rs. 4.5 lakh can be paid in 12 installments. The account matures in 5 years, however, the account holder can extend it for another 5 years, and upon maturity, either he can withdraw the entire amount or can choose to receive a monthly income for up to 10 years.
The account opening procedure for the post office monthly income scheme is relatively simple.
- Individuals willing to open an account must first fill out an application form, available at any post office branch or on the official website of the Post Office.
- The properly filled out form must then be submitted to the post office, along with the required documents.
- Once the application is received, the post office will open the account and provide the holder with a passbook.
- Next, the account holder will need to deposit a minimum amount of Rs. 1000 to activate the scheme and enjoy the promised facilities.
Note that withdrawals are not possible before 1 year from the date of deposit.
How does POMIS Work?
Let us look at how this govt-supported scheme actually works.
Let us take an example: Anil invests Rs 4.5 lacs in the post office monthly income scheme. His interest per year amounts to Rs 33,300 at 7.40%, so he receives Rs 2,775 per month as income.
What are the Eligibility Criteria?
To be eligible for this scheme, both for joint and single accounts, you must be an Indian resident who is 18 or older. However, minors above 10 are also eligible for this scheme given that their parents or legal guardians will handle the account activities until they are adults. A list of eligibility criteria has been given below:
- You must be an Indian citizen.
- You must be above 18 years of age
- For minors above 10 years of age, parents or legal guardians can open the account on their behalf of them
- You must have an account with a post office.
- You must have a regular income.
What are the Benefits of the Scheme?
The postal monthly income scheme (MIS) is one of the safest and most secure investment options which provides you with a regular monthly income.
The scheme offers several benefits, including:
- You get stable returns on your investment.
- The interest rate is quite higher than that of the banks.
- Backed by the Indian Govt, it’s a safe and secure investment option
- Opening as well as managing the account is easy and hassle-free
- It provides a regular income
- It also offers tax benefits
So, if you are searching for a safe investment option with stable returns, then the post office MIS scheme is a great option. The minimum amount for making a deposit is affordable, moreover, interest is taxable in the hands of the depositor. Even a 5-year extension is possible after maturity. Indeed, the post office monthly income scheme is one of the best choices to plan your future and manage your savings.
What is the post office’s monthly income scheme?
The Post Office Monthly Income Scheme (POMIS) allows investors to set aside (save) a specific amount every month under the backing of the Government of India. On a monthly basis, interest is added to this investment at the applicable rate, and paid to the depositor(s).
Who is eligible for the post office monthly income scheme?
Any adult Indian resident is eligible for this scheme. Parents or legal guardians can open this account on behalf of a minor older than 10 or any mentally challenged person.
What are the benefits of the post office monthly income scheme?
The Post Office Monthly Income Scheme offers a number of benefits. Reliability, high-interest rates, and steady income are just some of the benefits. There are many more, and a few of them are listed above in the blog.
What is the maximum deposit amount for a post office monthly income scheme joint account?
Joint accountholders can deposit up to 9 lakhs under this scheme, and all of them get an equal share of the total investment.
How can I invest in the post office monthly income scheme?
To invest in the postal MIS scheme, you must visit your nearest post office and fill out an application form. You will also need to give a copy of your identity proof and a photograph. After your application has been approved, you will be able to make your investment and start receiving your monthly income.
How can I withdraw my money from the post office monthly income scheme before maturity?
Upon expiration of a period of one year from the date of opening such account, the account holder may withdraw the deposit and close the account, provided he or she submits an application in Form-2, subject to the following conditions: (i) if the account is closed before the expiration of three years from the date it was opened, a two percent fee of the deposit shall be deducted and the remainder shall be paid to you; and (ii) Upon closing the account after three years from when it was opened, one percent of the deposit shall be deducted from the deposit and the balance will be credited to you.