POMIS: If you are retired and want to make a safe investment for a fixed income, then the Post Office Monthly Income Scheme (POMIS) can be a better option for you. Not only this, even if you want a fixed amount every month for the necessary expenses, still the Post Office Monthly Income Plan can be the right option for you. Also tell you that after retirement, if you make a fixed deposit to get a fixed amount, then you can get much more interest from this post office scheme.
What is monthly income plan
Actually, the Monthly Income Scheme (MIS) is an investment scheme run under the Union Ministry of Communications. The Post Office Monthly Income Scheme (POMIS) offers 7.5 percent interest annually. Your capital is safe in this. Also, you get better returns than debt instruments.
Returns get more than fixed deposits
The post office gives far more returns than fixed deposits in the monthly income scheme (POMIS). With POMIS you earn a fixed monthly income. In this scheme you can start investing by depositing a minimum of 1500 rupees every month. NRIs and Hindu Undivided Family (HUF) cannot take advantage of Post Office Monthly Income Scheme (POMIS).
Where the interest rate in fixed deposit schemes of most banks is around 6.5 percent to 7 percent. At the same time, 7.5 percent annual interest is available on Post Office Monthly Income Scheme (POMIS). Actually, in this scheme, about one and a quarter percent interest is available. However, in MIS, the interest rate is revised every 3 months.
Special Features of Post Office Monthly Income Scheme
- Can invest a maximum of 9 lakh rupees
- The maturity period for the Post Office Monthly Income Scheme (POMIS) is 5 years. You can invest a maximum of 9 lakh rupees in this scheme.
- Even if you open a joint account with your wife or children in the Post Office Monthly Income Scheme (POMIS), you can invest up to Rs 9 lakh only.
- A person can invest a maximum of Rs 4.5 lakh in Post Office Monthly Income Scheme (POMIS). Post office also in the name of minor
- An account can be opened in a monthly income scheme (POMIS), but Rs 3 lakh can be invested in such a POMIS account.
Minimum investment per month investment limit
- Rs 1,500 to Rs 4.5 lakh in a single account
- From Rs 1,500 to Rs 9 lakh in a joint account
No tax rebate on investment
Tax rebate is not available on investment in Post Office Monthly Income Scheme (POMIS) under Section 80C of Income Tax Act. MIS interest is taxed. However, in this you keep getting your fixed monthly income for this entire period.
Account Transfer Facility
Account can be transferred in Post Office Monthly Income Scheme (POMIS). This means that if you have been transferred from one city to another, then your MIS account will be transferred to another city. You do not have to pay any fees for this.
Multiple account opening facility
- You can also open more than one account under the Post Office Monthly Income Scheme (POMIS), but a person can invest a maximum of 4.5 lakhs.
- If you have a joint account with POMIS, you will be able to invest up to 9 lakhs.
- A single account can also be converted into a joint account later.
Loss when withdrawing money before five years
- Premature withdrawal of money in Post Office Monthly Income Scheme (POMIS) can result in losses. If you withdraw the money deposited within one year, you will not get any return on it.
- After one year, you can withdraw money from the investment made in the Post Office Monthly Income Scheme (POMIS), but if you withdraw money before 3 years, you may have to pay 2% penalty.
- After withdrawing the deposit after 3 years, after deducting 1%, you will get the deposit back from POMIS.
