post office monthly income scheme

If you are a job person and want to earn extra money every month besides your job, then a special scheme of a post office can fulfill your desire. However, you will have to make a lump sum investment in this scheme and under this scheme, you will be guaranteed a maximum limit income of a certain amount depending on your maximum investment limit every month. The name of this special post office scheme is ‘Post Office Monthly Income Scheme‘ or ‘Post Office MIS Scheme’ or ‘POMIS’.

We are giving you information about this post office monthly income scheme in this article below:

What Is Post Office Monthly Income Scheme (POMIS Account)?

income tax act

The Post Office Monthly Income Scheme is for investors who want to earn monthly interest on a monthly basis by investing a maximum investment. This scheme is very useful for retired employees and senior citizens. The maturity period in this account is 5 years from the account opening date. In this, all the account holders get a monthly interest every month on the deposit.

To open this account at the nearest post office you will have to deposit a minimum amount of INR 1000 or more than that. At present, the scheme is getting the interest at a rate of 7.3 percent. This annual interest is distributed over 12 months, which you get on a monthly basis.

Under the post office monthly income scheme, any Indian citizen of the country can open an account. You can also open an account with your child’s name. If the child is less than 10 years old, an account can be opened in his name on behalf of his parents or legal guardian. At the same time, when the child is 10 years old, the account holders can also get the right to operate the account themselves.

A Brief Account On POMIS:

A Brief Account On POMIS

You can open an account under the post office monthly income scheme either in a single or joint accounts manner, both have different deposit limits. As the maximum investment limit in a single is INR 4.5 lakhs, you can deposit up to INR 9 lakh rupees in a joint account.

One can earn the interest every month by lump sum money deposited in the nearest Post Office Monthly Income Scheme Account”. This scheme is beneficial for those who do not have a regular income but have minimum and maximum amount of money. Through this scheme, they can arrange a regular income. The good thing is that in this scheme your basic amount remains as it is.

This investment is completely risk-free due to being a government scheme. At the same time, it also gets good interest. In this article, we have attended all the important information related to the Post Office Monthly Income Scheme Account.

NOTE:

This scheme is beneficial for those who do not have a regular income but have certain amount of money. Through this scheme, they can arrange a regular income.

Salient Features of POMIS:

  • Post office Monthly Income Scheme accounts can be held independently or together (max. three grown-up holders)
  • If there should arise an occurrence of shared service, each account holder will hold an equivalent offer
  • The greatest sum that a minor can contribute is INR 3 lakh
  • At least INR 1000 minimum deposit required for account opening. Higher sums in products of INR 1000
  • Post office Monthly Income Scheme accounts can be unreservedly moved to start with one Post Office then onto the next post office when your job place or residential address changes for some reason
  • Such post office schemes provide a fixed monthly income
  • No restriction on the quantity of Post office Monthly Income Scheme accounts held separately/mutually. Subject to the max. aggregate equalization rules
  • Total most extreme parity overall sole worked Post office Monthly Income Scheme accounts is INR 4.5 lakhs. However, for mutually held accounts, the most extreme Post office MIS account balance limit is INR 9 lakhs
  • A minor matured 10 years or above can profit from the Post Office Monthly Income Schemes Account. However, on turning 18 years, the person in question will be approached to change over his/her minor account to a grown-up account
  • The Post office credits continue straightforwardly to the financial specialist’s post office’s bank account on a monthly premise by CBS/ECS
  • Post Office MIS scheme pays interest and can keep on gaining enthusiasm for as long as 2 years after account development in case continues are not pulled back by the financial specialist.
  • The relevant rate will be equivalent to that of a standard Post Office bank account
  • The development time of the scheme is 5 years from the account opening date
  • Chosen one office accessible and can be refreshed later subsequent to opening an account
  • Such post office schemes don’t offer any assessment discount on the speculations or development sum or market risks assurance to senior citizen savings scheme.

NOTE:

No bonus accessible on POMIS account opened on or after 1st December 2011. POMIS Accounts opened former were qualified for a 5% bonus on the deposit amount

What Are The Interest Rates Of the Post Office Monthly Income Scheme?

The Central Government and Finance Ministry fix and resettle the interest Rate of the Post Office Monthly Income Scheme (POMIS) account every quarter on the basis of returns received by the Govt. bonds of the same time lock-in period. It is not a debt-oriented mutual fund.

Thus the rate of interest of the POMIS account for Financial Year 2020-2021 (April – June 2020) is 6.60%. The following chart is showing the historical POMIS Interest income Rates:

Period

Annual Interest Rate of POMIS Account

1st April 2020 to 30th June 2020

6.60%

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%

NOTE:

Interest payout on Post Office Monthly Income Scheme (POMIS) occurs monthly. The Interest income Rates of POMIS is subject to change as per the government notification.

How To Open Post Office Monthly Income Scheme (MIS) Account?

minimum amount

You can go to any post office at your convenience and fill the post office monthly income scheme account form and submit it. To open an a/c under the POMIS, follow the following steps to see the POMIS account opening procedure-

  • First, for the Post Office Monthly Income Scheme (MIS), you must have Post office savings account in the Post Office.
  • Get an application form for Post Office MIS schemes from the Post Office
  • You can also get the application form from the official website of the Post Office
  • Fill the form properly and submit the duly filled form together with the required copies of all documents at the post office.
  • Mention your Name, Date Of Birth as well as your Mobile no. and nominees (if you want to)
  • All your required documents should be self-attested
  • Finally, you can proceed to deposits (Minimum of INR 1000/-) via post-dated cheque  or cash

NOTE:

You will have to carry all the original documents with you for verification purpose

What Are the Eligibility Criteria For POMIS?

To avail of the Post Office’s Monthly Income plan individuals must have the following eligibility to get regular or supplementary income:

  • The person has to be of or above the age of 10 years
  • You should be a resident of India to avail this Post Office’s MIS. NRIs aren’t eligible to avail of this scheme

What Are The Required Documents?

With the Account Opening Form, you will have to submit the following documents.

  • Photocopy of one of the documents authenticating your identity such as Aadhaar card, PAN card, Voter ID, driving license, ration card, etc.
  • Two recent passport size photographs of the account opener/s
  • Photocopy of One of the Documents Certifying Your Residence Address such as Aadhaar card, PAN card, Voter ID, driving license, ration card, etc.

You Can Transfer Account To Any Other Post Office

You Can Transfer Account To other post office schemes

You can also transfer your Post Office MIS Accounts to any other post office if you change your residence, job place, or for any other important reason.

  • For this, you have to submit an application in the Post Office where you have an account
  • The application also needs to mention the reason (In Favor) for the need for account transfer.

Are There Any Tax Benefits Under The Post Office MIS?

Tax Benefits under monthly income plans

The downside of the Post Office MIS Accounts is that there is no Exemption or deduction on the amount deposited in it and the interest earned from it. Although the post office does not deduct any kind of TDS on the income you earn.

The annual total of the interest earned as a monthly installment is included in your taxable income. That is, according to the tax benefits of that year it will be included in the tax deduction calculation.

Rules For Premature Withdrawal:

Rules For Premature Withdraw money

You can withdraw the amount deposited in the Indian Post Office MIS Accounts even before the Maturity Period of 5 years if there is any mandatory requirement. You get this facility only after completion of at least 1 year of account.

On withdrawing the money before maturity, you get it back by deducting a small amount from the fixed deposit amount. You also check the rule from the post office online website. The rules of this deduction are as follows:

The Rules:

  • You can’t withdraw the amount deposited in it for 1 year from the date of opening the POMIS account.
  • If you have an old account from 1 year to 3 years, you get the remaining amount back by deducting 2% from the amount deposited in it.
  • If you have an account that is more than 3 years old, you get the rest of the amount by deducting 1% from the amount deposited in it.

Is There Any Facility For Nominee Under Post Office MIS?

fixed deposit equal share interest rates

You can also file a nominee for your POMIS Account. A nominee is a person who gets a fixed deposit after the death of the account holder.

The facility of registering the nominee’s name is available only when you open the account. The nominee has a detailed filling column in the account opening form.

For some reason, if you are not able to register the name of Nominee while opening the account, then the name of Nominee can be entered later.

You can also change the name of the person whom you have created a nominee at the time of opening the account or later.

Who Can Open An Account Under The POMIS?

national savings certificate Open An Account Under The POMIS

Under the POMIS, risk-averse investors can open an account in their own name single account, and/or a Joint Account. One can open a single account or joint accounts under this scheme in the name of any adult, Minor, or Child.

In the case of a child below 10-year-old, you can open an account in his name on behalf of his parents (Natural Guardian) or Legal Guardian. The responsibility of the operation of the account will also remain with the Guardian.

In this same scheme, it has prohibited to open an account in the name of a group, institution, committee, or family.

What Is Post Office Monthly Income Scheme Deposit Rules?

national savings certificate

  • One can open an account of the Post Office’s Monthly Income Scheme by depositing at least INR 1000. A maximum limit of INR 4.5 lakh can be deposited on a single savings account (Not a joint account). And a maximum limit of INR 9 lakh rupees can be deposited on having a joint account.

    Such account, check or cash can be opened by depositing money by any means. In the event of depositing the check, the date of opening the savings account will be considered as the date on which the money of the check will be deposited in the government savings account. The date you deposited the check will not be considered a date.

    FAQ:

    Q. What is Post Office Monthly Income Scheme?

    A. Monthly Income Scheme (MIS) is an investment scheme run under the Union Ministry of Communications. The POMIS yields an interest paid of 7.5 percent per annum. Your capital is safe in this. Also, you get better returns than debt instruments.

    Q. Which scheme is best for monthly income?

    A. Savings account and The POMIS is the best for monthly income

    • This scheme has a guaranteed monthly income if the investor invests lumpsum.
    • The duration of the scheme is 5 years with monthly benefits at an annual interest earned rate of 6.6%.
    • Any residential person can open a single or MIS joint accounts.
    • The minimum investment in a single holding savings account is Rs 1500.

    Q. How is the monthly income scheme calculated?

    A. The MIS from the post office permits an individual to invest a certain amount and get a monthly income of five years in the form of interest. It is like, 4,50,000*(0.066/12) = INR 2,475. Therefore, the monthly interest rate is INR 2,475, and the total interest in 60 months will be INR 1,48,500.

    Q. Can Monthly Income Scheme (MIS) interest be credited to the Post Office Recurring Deposit (RD) account?

    A. No. There is no such facility. The interest amount of the post office’s MIS can be credited to your SB account and after that, you can transfer it to the post office recurring deposit (RD). Only that process is permissible.

    Q. How to transfer accounts and certificates?

    A.  To transfer savings accounts- the depositor should apply in the prescribed form [SB10(b)] or manual application along with the address proof. You can submit the application either in the transferee office or transferring office.

    To transfer certificates- the investor should apply in the prescribed form [NC32]. You can submit the application in either of the offices along with the address proof.

    Q. How to open an account in the post office and its requirements?

    A. To open a Post Office Savings Account (SB), Monthly Income Scheme (MIS), Time Deposit (TD), Recurring Deposit (RD), SB3, SB103 (pay-in-slip), and specimen signature slip for SB and TD are required.

    For the senior citizen savings accounts, you will need separate forms. For Post Office Savings Account (SB) introduction is required

    Q. How I get duplicate passbooks?

    A. Application in the manuscript application or prescribed form may be specified by attaching prescribed payment in the form of the postage stamp. Your new duplicated Passbook will be distributed by sub-post offices only.

    Q. How much does it charge for a bounced cheque?

    A. In case of bouncing of cheque in Post office, INR. 50/- is charges as service charge.

    Q. What is the minimum balance required for the MIS account?

    A. The minimum balance for the Post Office’s MIS account is only INR 100/-

    Q. How I can get the encashment of MIS certificates/accounts before maturity?

    A. Under the Post Office MIS, premature closure is permissible after 1 year

    Q. What Are The Interest Rates Of the Post Office’s MIS?

    A. The current interest rate of the convenient Post Office MIS scheme is 6.60% (1st April 2020 to 30th June 2020)

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