Naa Songs
Post Office offers plenty of saving options, such as Post Office Savings Account, Post Office Time Deposit, Post Office Recurring Deposit, etc. The Post Office Monthly Income Scheme (POMIS) is one of these, & it is backed by a government Money Saving Plan that offers a fixed monthly income on investment. This scheme is well-designed for risk-averse individuals who look for a safe & steady source of income. Under this plan, an investor is required to deposit as low as INR 1500 per month & get interest thereon.
Features of Post Office Monthly Savings Plan
Provided are the features of a Post Office Monthly Savings Plan:
- Lock-In period:
The funds deposited in the Post Office Monthly Savings Account cannot be withdrawn before 5 years.
- Maximum Limit:
Under this plan, the maximum amount of deposit cannot exceed INR 9 lakhs. Also, if the scheme is held in multiple post offices, the aggregate amount of deposit cannot exceed INR 9 lakhs.
In the case of a joint account held by 2 to 3 individuals, the maximum deposit amount cannot exceed INR 15 lakhs.
- Transferrable:
In case of a shifting of location, the POMIS account can also be shifted to the nearest post office. This means the investment corpus, along with the interest amount, will be carried forward to such a location.
- Joint Account
A joint account can be opened by a maximum of up to 3 individuals, each having similar rights. The maximum amount to be invested cannot exceed INR 9 lakhs in the case of one individual & a maximum of up to INR 15 lakhs in the case of the joint account.
- Minor Account:
This account can also be opened in the name of a minor with a minimum age of 10 years. A minor can withdraw the funds once he is 18 years of age.
- Eligible Residential Status:
An Indian citizen is eligible to open a POMIS account.
- Auto-Withdrawal:
The monthly interest amount can be withdrawn by choosing the option “Auto withdrawal” & getting it transferred to the savings account through ECS or PDCs.
- Penalty:
If you opt to withdraw the funds before a lock-in period of 5 years, you will be charged with a penalty.
- Investment Amount:
The minimum amount required to open the POMIS account is INR 1000.
- Tax Benefits:
It does not attract any tax Deduction at Source (TDS), & it also does not attract any tax benefits.
Benefits of POMIS
Let us now know the benefits of POMIS:
- Steady Monthly Income
Unlike market-linked plans, this Savings Plan provides a regular source of income, which may be a valuable income source for retirees & for those who are looking for a steady income source to meet routine expenses.
- Government Backing
It is a low-risk investment scheme backed by the government of India, which builds security & trust.
- Ease of Operation
This account is simple to open & easy to maintain as post offices are spread across both rural & urban areas in India. This feature of the scheme attracts investors who find it complex to deal with financial instruments.
- No Market-Related Risks
This scheme is not linked to market-related risks due to its pre-determined interest rates & fixed investment tenure. This protects the investors from market fluctuations.
- Nomination Facility
This scheme allows investors to appoint a nominee to whom all the benefits accrued would be transferred in case of the sudden demise of the investor.
Eligibility Criteria
Provided are the eligibility parameters to be met to open a POMIS account:
- Only an Indian resident can open this account.
- The minimum age of investors should be 18 years.
- Non-resident Indians cannot open this account.
- The account can also be opened on behalf of a minor who is 10 years old or older.
- Once the majority is attained, a minor must apply to get the account converted in his name.
How to Open a Post Office Monthly Income Scheme Account?
Provided are the different ways to open a Post Office Monthly Income Scheme Account:
1.Through Internet Banking
Step 1: Open the website of “Department of Posts”.
Step 2: Click the tab “New User Activation”.
Step 3: Provide your “Customer ID” & “Account ID”. Click “Continue”.
Step 4: One can also visit the home branch of the post office, fill out the application form, & get internet banking activated after submitting the documents.
Step 5: To log in, use your User ID & password once the internet banking is activated.
Step 6: Go to the tab “General Services” < “Service Request” < “New Requests”.
Step 7: Choose the desired type of account to be opened from the options available.
Step 8: Provide the details on the application form. Click “Submit”.
2.Through Mobile Application
Step 1: Download the app “India Post Mobile Banking”.
Step 2: Go to the tab “Requests” to open the POMIS account.
Step 3: Provide some of the basic details, such as the amount of deposit, tenure, bank account from which the amount is to be debited, beneficiary details, etc.
3.By Downloading the Application Form
Step 1: Download the application form from the official post office website & get it printed.
Step 2: Attach all the required documents along with the application form.
Step 3: Visit the post office home branch to submit the form along with the documents.
Step 4: Pay the minimum amount that is required to open the POMIS account.
Step 5: Once the details are verified, your account will be opened.
Conclusion
The Post Office Monthly Income Scheme is a secure investment option where funds are invested to get guaranteed & a regular source of income. This scheme best suits risk-averse individuals, i.e., pensioners & retirees who are looking for a steady & regular source of income. This scheme offers attractive interest rates, is backed by the government, & is a safe & trustworthy investment option.
