The Post Office Monthly Income Scheme (POMIS), which is offered by India Post, is a lesser-known but extremely beneficial investment avenue. Post Office Monthly Income Scheme accounts are a popular choice among investors since they can deposit a certain sum of money into this scheme for a period of 5 years and receive a guaranteed interest which is payable monthly. While a POMIS account can be opened by any Indian resident, it is ideal for senior citizens and retired employees since this mode of investment poses no risk and still guarantees a fixed monthly income.
Opening a Post Office Monthly Income Scheme account requires minimal paper-work and documentation, and can be done in a hassle-free manner. The documents that need to submitted are:
At the time of opening the account, you will be given the option of opening an individual account or a joint account. After opening your account, you can proceed to investing your preferred sum of money, provided it is within the minimum and maximum limits, as shown below.
|Lower Limit||Upper Limit|
Investing in a Post Office Monthly Income Scheme is highly advisable if you are risk-averse, but are still interested in an investment option that will give you fixed monthly incomes. Thus, while any individual can choose to invest in a POMIS account, it is an ideal investment option for senior citizens and individuals who have just retired and are looking to supplement their monthly income or receive a fixed sum of money on a monthly basis.
Yes, you can nominate a beneficiary any time during the POMIS account tenure. In order to make the nomination, you will have to collect the prescribed form from the postmaster.
If you are in need of emergency liquidity and you need to withdraw your funds before the maturity date, the following deductions will be applicable:
Your deposit will continue to earn an interest for a period of 2 years after the date of maturity. Post that, it will not earn you any additional interest. Thus, it is recommended that you withdraw your funds post maturity and re-invest it.
The interest amount can be paid to you through any of the three methods mentioned below:
Currently, no bonus is payable upon attaining the date of maturity. Previously, accounts that were opened between 8.12.2007 and 30.11.2011, earned a 5% interest on the principal amount, upon attaining maturity.
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