The Post Office Monthly Income Scheme, popularly known as POMIS, is one of the most popular instruments in the post office since it provides completely safe and guaranteed returns every month, almost like a pension scheme. The following persons can open a POMIS account: a single individual (adult), two individuals jointly. A maximum of 3 individuals can open a POMIS account jointly. A guardian can also start a POMIS account in the name of a person of unsound mind or a minor. A minor is his/her own name who is above 10 years of age can also open an account.
One can open a Post Office MIS account with a minimum investment of Rs 1,000. The additional amounts have to be in multiples of Rs 1,000. While the minimum amount is Rs 1,000, the maximum amount is Rs 9 lakh is the account is in a single name. In case of joint holding, the maximum deposit can be Rs 15 lakh. Due to its secure nature, POMIS is especially popular with senior citizens.
What is the interest on Rs 1 lakh in post office?
The rate of interest paid by POMIS is 7.4%, which is a competitive one among the guaranteed-return schemes in India. The interest is payable when a month is completed from the date of opening of account. But please note if the interest is not claimed by the account holder, then the interest won’t earn any additional interest. Only the original principal will generate interest income.
Is POMIS a good investment: See calculator
The maximum amount that an individual can invest in POMIS is Rs 9 lakh and the maximum investment for a joint account is Rs 15 lakh. Is we use the online POMIS calculator, we can see whether POMIS is a good investment. If Rs 9 lakh is invested, it will generate a monthly interest of Rs 5,550. If Rs 15 lakh is invested, the interest generated every month will become Rs 9,250.
The point to note is that the interest income from post office MIS is taxable in the hands of the investor. The duration of the investment in POMIS is 5 years. After the expiry of 5 years, the money is returned to the depositor.
