In a double dose of good news for those who invest in or are interested in investing in the post office monthly income scheme, the government has made two announcements.
The Ministry of Finance has notified investors that the Post Office Monthly Income Scheme's (POMIS) investment limit has been hiked. As per the notification issued recently by the finance ministry, an individual can now invest a maximum of?Rs 9 lakh in a single capacity and Rs 15 lakh in a joint capacity in POMIS. Earlier, the limits were Rs. 4.5 lakh and Rs. 9 lakh for single and joint capacity, respectively.
The POMIS scheme is mainly opted for by risk-averse individuals who are looking for monthly income options from relatively safer instruments. Even senior citizens can invest in this scheme to get monthly interest as income. Simply put, the Post Office Monthly Income Scheme is a scheme where you invest a certain amount and earn a fixed interest every month.?As the name suggests, you can invest in this at any post office.
Also, the POMIS interest rate is reviewed by the government every quarter. For the current quarter of April¨CJune 2023, the government has hiked the interest rate on fresh investments to 7.4% per annum (paid monthly).?
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(i) A single adult
(ii) Joint Account (up to 3 adults) (Joint A or Joint B)
(iii) a guardian on behalf of a minor or person of unsound mind
(iv) a minor above 10 years old in his own name.
(i) An account can be opened with a minimum of Rs. 1000 or in multiples of Rs. 1000.
(ii) A maximum of Rs. 9 lakh can be deposited in a single account and Rs. 15 lakh in a joint account.
(iii) In a joint account, all the joint holders shall have an equal share of the investment.
(iv) Deposits or shares in all MIS accounts opened by an individual shall not exceed Rs. 9 lakh.
(iv) The limit for an account opened on behalf of a minor by a guardian shall be separate.
(i) Interest shall be payable on completion of a month from the date of opening and so on till maturity.
(ii) If the interest payable every month is not claimed by the account holder, such interest shall not earn any additional interest.
(iii) As per the India Post website, in case of any excess deposit made by the depositor, the excess deposit will be refunded back?and only PO Savings Account interest will be applicable from the date of account opening to the date of refund.
(iv) Interest can be drawn through auto credit into a savings account standing at the same post office, or ECS. In the case of a MIS account at CBS Post Offices, monthly interest can be credited into a savings account standing at any CBS Post Office.
(v) Interest is taxable in the hands of the depositor.
Also Read:?PPF Rules: Partial Withdrawal, Premature Closure & Loan Facility
(i) No deposit shall be withdrawn before the expiration of 1 year from the date of deposit.
(ii) If the account is closed after 1 year and before 3 years from the date of account opening, a deduction equal to 2% of the principal will be deducted, and the remaining amount will be paid.
(iii) If the account is closed after 3 years and before 5 years from the date of account opening, a deduction equal to 1% of the principal will be made, and the remaining amount will be paid.
(iv) An account can be prematurely closed by submitting a prescribed application form with a pass book at the concerned post office. ?
(i) Account may be closed on expiration of 5 years from the date of opening by submitting the prescribed application form?with the pass book at the concerned post office.
(ii) In case the account holder dies before the maturity date, the account may be closed, and the amount will be refunded to the nominee or legal heirs. Interest will be paid up to the preceding month, during which the refund is made.
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