In today’s time, every person wants his savings to be safe and there should be regular income on it. In such a situation, Post Office Monthly Income Scheme – Pomis can prove to be a great option. This scheme is especially made for those who want a fixed income every month without any risk.
This scheme of the post office is supported by the government, which keeps the investment in it completely safe. On investing in it, you get income as interest every month. Let’s know in detail about this scheme.
What is Post Office Monthly Income Scheme (Pomis)?
Post Office Monthly Income Scheme (POMIS) is a government savings scheme, in which you can get regular income in the form of interest every month by investing a lump sum. The scheme is mainly considered ideal for senior citizens, housewives and individuals avoiding risk-investment.
The duration of this scheme is 5 years and at the end your original amount is refunded. Currently, 7.4% annual interest rate is applicable to this scheme, which is paid on a monthly basis.
Brief description of pomis
| Properties | Description |
| Name of the scheme | Post Office Monthly Income Scheme (POMIS) |
| Interest rate | 7.4% per year |
| Minimum investment amount | ₹ 1,000 |
| Maximum investment limit (individual) | Number of 9 million |
| Maximum investment limit (joint) | 15 Laxman |
| Tenure | Five years |
| Monthly income payment | Every month |
| Risk level | Less |
How to get a guarantee of ₹ 5,500 every month?
If you invest ₹ 9 lakh in this scheme, then you will get an income of ₹ 5,550 every month at 7.4% annual interest rate. It is calculated in the following way:
Calculation formula:
Monthly income = (investment amount × annual interest rate) ÷ 12
Monthly income = (investment amount × annual interest rate) ÷ 12
Example:
- Investment amount: ₹ 9,00,000
- Annual interest rate: 7.4%
- monthly income:
- ,
- ,
Similarly, if you invest ₹ 15 lakh in joint account, then your monthly income will be ₹ 9,250.
The main advantage of pomis
- Regular monthly income:
This plan gives fixed income every month, which helps to meet your daily needs. - Safe investment:
This is a government -backed scheme, which keeps your money completely safe. - low risk:
Market fluctuations have no effect on this scheme. - Premature withdrawal facility:
If necessary, you can withdraw your deposit after 1 year (with some fine). - Enrollment facility:
You can add a person enrolled to your account so that he can benefit in your absence. - Transfer facility:
This account can be transferred to any post office across the country.
Account opening process in pomis
Adopt the following process to open post office monthly income scheme account:
- Go to the nearest post office and get the application form.
- Submit the required documents like Aadhaar card, PAN card and passport size photo.
- Pay a minimum amount of ₹ 1,000 or more to open an account.
- After opening the account, you will be provided with a passbook.
Investment Terms in Pomis
- Personal Account: Can invest up to a maximum of ₹ 9 lakh.
- Joint Account: Can invest up to a maximum of ₹ 15 lakh.
- Account for minors: A minimum of ₹ 1,000 and a maximum of ₹ 3 lakh can be invested.
- The account opening should be at least 10 years old.
Premature clearance rule
If you want to withdraw your deposit before maturity, then the following conditions will apply:
- Withdrawal is not possible before 1 year.
- Between 1 and 3 years, a fine of 2% of the total deposit will be deducted.
- A fine of 1% of the total deposit will be deducted on withdrawal between 3 and 5 years.
Comparison of Pomis vs other schemes
| Properties | Fruit | Bank fd | Mutual fund |
| Interest rate | 7.4% | 5-8% | Market based |
| Risk level | Less | Zero | Medium to high |
| monthly income | Yes | No | Yes |
| Tax exemption | No | Section 80C | No |
| Lock-in period | Five years | apart | nobody |
Who can apply?
- It is mandatory to be an Indian citizen.
- Accounts can be opened by guardians for minors.
- NRIs cannot invest in this scheme.
Important documents
- Identity Card: Aadhaar Card/PAN Card/Voter ID.
- Evidence of address: Electricity bill/passport/driving license.
- Passport Size Photo.
Is Pomis the right choice for you?
If you want regular income without taking risk then this scheme can be an ideal option for you. This scheme is especially beneficial for retirement planning or housewives.
conclusion
Post Office Monthly Income Scheme (POMIS) is a safe and beneficial savings scheme that provides guaranteed income every month. It is suitable for those who want stable returns on their savings while avoiding market risk.
Advice: If you want regular income for a long period, then investing in Pomis can be a sensible step. However, before any financial decision, make sure to evaluate your needs and financial conditions.
Disclaimer
This article is written only for the purpose of providing information. Please seek specialist advice before any financial decision. The interest rates of the plans can change from time to time; Get the latest information from post office or concerned authorities.
