Key Things to Know About The Post Office Monthly Income Scheme Account If you are looking for investment options that will allow you to get decent returns while protecting your invested capital then a Post Office Monthly Income scheme can be an ideal solution for you. The POMIS is a popular scheme among both the rural and the urban investors as it allows them to generate a side income to fund income shortfalls.
But before you decide to park your lump sum, you must be aware of some of the important aspects of the scheme: Want to know more on investment Planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
Key Things to Know About the POMIS Account: POMIS is a popular investment scheme among the rural and urban population in India. It is a low-risk MIS that aims to generate a steady and risk-free income. The interest accrued is paid on a quarterly basis to the investor. The scheme is specially designed to help investors generate a side income by parking their idle savings for a period of 5 years. Here are some of the key aspects of POMIS you must know: See Also: Best Investment Plans for Millennials in 2020 Rate of Interest on Deposits: The rate of interest on POMIS is revised every quarter and is currently fetching an interest at 7.3% per annum. The depositor can use the interest to either create a side income or save it in their savings account as emergency funds. The interest can be drawn through an auto-credit facility that directly transfers the quarterly accrued interest in the savings account of the beneficiary. Premature Withdrawal: Ideally, post office Monthly income scheme comes with a lock-in period of 5years. The deposits are locked-in during this period to fetch a pre-specified interest amount throughout the investment tenure. The investors can withdraw the invested funds on the maturity of the scheme. However, if the investor withdraws the funds before 5 years he is eligible to get the following benefits:
Withdrawal of deposit within a year: No benefits Withdrawal of deposit within 1 year to 3 years: The depositor receives the entire deposit after the deduction of 2 penalty Withdrawal of deposit after 3 years: The customer becomes eligible to receive the entire deposit with a minimal penalty of 1%.
See Also: Foreign portfolio investments in India Minimum and Maximum Investment Amount: The Indian post office has a larger network compared to the banks and operates in the remotest of locations. Thus the savings schemes are designed in a way so
that it benefits a large population. Investors can take advantage of POMIS scheme with a minimum investment of Rs. 1000. Investments of an amount higher than this must be in multiples of Rs. 1000. The maximum investment is capped at 4.5 Lakh for a single account. For accounts held in joint names, the maximum investment is capped at Rs. 9 Lakh. Tax Benefits: POMIS scheme offers no significant tax benefits to investors. While there is no TDS for this scheme, the interest accrued on deposits is taxable as per the income slab of the investor. The amount deposited in POMIS account is not eligible for tax deduction under Section 80C of the Income Tax Act, 1961. Accounts for Minors: The POMIS scheme offers the flexibility of opening accounts in the name of the minors as well. Investors (parent or guardian of the minor) can open an account on behalf of the minor aged 10 or above. The accounts opened in the name of a minor cannot exceed investments of over Rs. 3 Lakh. The funds can be accessed by the minor upon attaining 18 years of age. A minor can also be named as the nominee for POMIS accounts. See Also: 5 Good Investments for the Year 2020 Investment Risk: The scheme is offered by the Indian Postal Service and is thus backed by sovereign guarantee. It is one of the best investments for people who are looking to generate a moderate income while keeping their investments safe. The returns on this scheme are not market-linked. Thus the scheme offers a high degree of capital protection and contains zero investment risk. All you have to do is to invest a lump sum amount and you can enjoy fixed returns at the prevailing interest rate. Mode of Operation: The POMIS accounts can be operated either singly or jointly. The accounts can also be transferred freely from one post office to another. The joint account can be operated by a maximum of 3 individuals where every individual has an equal
share. The accounts can also be converted from single to the joint account and vice versa thus offering greater flexibility to all types of investors. See Also: How to Get Rich in New Year 2020? Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing. Have a complaint against any company? IndianMoney.com's complaint portal Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge your complaint. If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com. Be Wise, Get Rich. Visit:
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