Post office Monthly Income Scheme (POMIS)
- 20 Comment
Introduction
In this article I will be writing about the Post office Monthly Income Scheme(POMIS). Our readers posting questions about the POMIS and comparing it with the other fixed deposit options. I come up with this article to provide you some in depth details to differentiate POMIS with other investment options. Here I am going to provide the key facts about the POMIS. After reading the article please post your comments and write down your doubts. Subscribe to our future articles here.
Key Factors on POMIS
The following is the list of facts about the POMIS investment.
- It has the lock in period of 6 years.
- 8% Interest Rates offered
- Maximum 450000 allowed for single account. It is 900000 for the joint account.
- Minimum amount is Rs.1500
- Account can be opened in any departmental post office and is transferable from one post office to another
- Interest amount is payable monthly.
- If the account is closed on or before expiry of three years opening of such account, an amount equal to two percent of the deposit shall be deducted and remainder paid to the depositor
- If the account is closed after expiry of three years opening of such account, an amount equal to one percent of the deposit shall be deducted and remainder paid to the depositor
- 5% Maturity Bonus
- You can buy a post office MIS at any post-office in India. When you open an MIS, you will get a certificate issued by the post office. In addition, the investor is provided with a passbook to record his transactions against his MIS.
- Only scheme in Post office where monthly interest is payable.
- Interest not with-drawan does not carry any interest.
- Non-Resident Indian / HUF cannot open the POMIS Account.
- Account can be opened by an individual, two/three adults jointly and a minor through a guardian.
Summary
I hope this article is useful for who want to learn about the Post Office Monthly Income Scheme(POMIS). I am looking for the feedback from you. Thank you for reading this article.
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20 Comments on this post
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rahul said:
Hi Krishna,
Maximum amount 450000/- for single and 900000/- if held jointly.Can you please confirm on this?
The Interest amount can be credited to PO saving account . Saving Account with cheque book facility must keep mimimum balance of 500 /-
Will the cheque be deposited in other bank to transfer the interest amount ? I mean to say , this cheque can be used in the same way as the cheque we used of any natinalised bank?Please throw some light on this
November 8th, 2009 at 12:17 am -
Dhaval said:
sir,
I am NRI so i can’t open MIS account.Can i put my name as a joint holder with my wife & then we can invest upto max. her limit of 4.5lakh. Also can she open this MIS account from my NRI income of 4.5lakh. Also let me know she can open my minor child MIS account with she as a guardian upto limit fixed for minor from my NRI money.
Please clear me all hese issues.
Thanks
DhavalNovember 8th, 2009 at 9:42 pm -
rahul said:
Hi daval,
As far as I can know , If you are NRI you cannot open single or joint account. If your wife is resident of india, she can open upto maximum of 4.5 lacs with your nominee name . Your minor child can open a single account of maximum 4.5 lacs with your wife as gaurdian. Hope this clarifies your doubt. No matter where the money comes from, your wife can utilise those to open POMIS account.There is no seperate limit for minor account.
If possible , try to open joint account of your wife and minor with maximum limit of 9 lac with you as nominee. The only disadvantage of this , if in unforseen curcumstances, you have to close the account before maturity date, then whole amount of 9 lacs will be withdrawn, even if u r in need of much less amount than 9 lacs. As opposed to this, if your child and wife has seperate account then withdrawal will be upto 4.5 lacs only . The deducted amount will also be less in this case as opposed to 9 lacs..
Rest upto u and ur choice
November 8th, 2009 at 11:42 pm -
krishnas said:
Hello Rahul,
Thank you for the answer. I looking forward to your active participation in the comments.
Thanks,
KrishnaNovember 9th, 2009 at 8:44 am -
dhruva said:
One important thing you forgot to mention (or probably which you dont know) -
You can Deposit in Monthly Income Scheme and then invest interest in Recurring Deposit to get a very good interest. (official indiapost site says 10.5% but i doubt it) … still it sounds better than FD return (currently my bank HDFC is giving 6% … TDS extra)
Check this official link -
http://www.indiapost.gov.in/Netscape/6yearsMIS.htmlsee the bottom of above link where it says-
Deposit in Monthly Income Scheme and invest interest in Recurring Deposit to get 10.5% (approx) interest.Above scheme operates automatically, if you open a saving bank account and give a request for automatic transfer of Monthly Income Scheme interest to Recurring Deposit through Saving Bank account.
November 9th, 2009 at 11:48 am -
krishnas said:
Hello dhruva,
Thank you for the valuable information.
Thanks,
KrishnaNovember 9th, 2009 at 6:26 pm -
Ashish Handa said:
I invested Rs. 225000 , in PO MIS scheme through Agent & give him post dated 60 signed forms so that he able to transfer the interest amount ( Rs.1500 ) ( from Saving Account to RD Account ) on month on month basis.
I did this step beacuse i do service in mumbai & i have post office account in my home town panipat ( haryana) .
So, by this way, i free from doing this activity on month on month basis ,Agent will do this activity on my behalf.but now i have doubt that if Agent want , he can misuse my signature .
for example extract duplicate passbook from post office ( as he knew my passbook number ) & use my signature to extract the prinicple amount ( Rs. 225000 ) ……
Kindly let me know What steps should be taken to stop this ..
November 20th, 2009 at 5:16 am -
dhaval said:
I am NRI so i can’t open MIS account.Can i put my name as a joint holder with my wife & then we can invest upto max. her limit of 4.5lakh. Also can she open this MIS account from my NRI income of 4.5lakh. Also let me know she can open my minor child MIS account with she as a guardian upto limit fixed for minor from my NRI money.Also let me know who will be tax liable of interest from this investment as this is my income from outside india.
Please clear me all hese issues.
ThanksNovember 21st, 2009 at 11:48 pm -
dhaval said:
I am NRI.Can I put my name as a joint holder(second0 with my wife & then we can invest upto max. her limit of 4.5lakh. Also can she open this MIS account from my NRI income of 4.5lakh. Also let me know she can open my minor child MIS account with she as a guardian upto limit fixed for minor from my NRI money.Also let me know who will be tax liable of interest from this investment as this is my income from outside india.
Please clear me all these issues.
ThanksNovember 21st, 2009 at 11:49 pm -
krishnas said:
Hello dhaval,
Read the previoud answer by Rahul, which answer to your question. Your wife is liable to pay the tax for the interest income.
Thanks,
KrishnaNovember 23rd, 2009 at 2:01 am -
chandrasekhara reddy thota said:
pl let me know the provisions relating to IT on the interest earnings from POMIS.
yours truly,
T.CHANDRASEKHARA REDDY
March 9th, 2010 at 11:20 pm -
Viinod said:
Hi Krishna,
1. Is it compulsory to open saving a/c in post along with POMIS?
2. If yes ! will I be a getting cheque book and will be able to do all all transaction , way I do in any bank?
3. If No ! how can I withdraw interest amount?
4. Is interest taxable (income tax or TDS)?
5. Any tax benefit(like 80c or so)?
6. if invested on joint names !, intrest would be in who’s income weather it would considered either primary investor or secondary investor?Regards
ViinodMarch 22nd, 2010 at 3:48 am -
Vasava said:
Hello Sir
I have opened POMIS joint account with name of my brother and his wife with my money, but we want to terminate the account after 3 months. When terminating the account do I need both my brother and his wife’s signature or my signature will suffice, I have the pass book of the joint accountThank you in advance
March 27th, 2010 at 9:05 pm -
sivaraman said:
Dear Sir/Madam,
Quote your words: When you open an MIS, you will get a certificate issued by the post office. In addition, the investor is provided with a passbook to record his transactions against his MIS.When I opened POMIS in coimbatore, I am given a passbook mentioning the names & address, Date of investment and maturity date with seal of the postmaster. That is all. Any certificate issued to investors further to the pass-book …because I have invested Rs.9 lakhs in the name of me and my wife. Please clarify with …and reply.
More over I have changed my residence to an another state. What are the safety procedures involved (to be adopted) in transfering the account?
With regards,
sivaramanApril 6th, 2010 at 12:06 am -
sivaraman said:
Please send answer to my earlier query regarding certificate issued when invested in pomis account.
April 6th, 2010 at 12:13 am -
Amit Phatak said:
Is there a provision to direct deposit monthly interest from the POMIS into a non-Post-Office Savings bank account e.g. SBI savings account via NEFT each month ? Or can the monthly interest be deposited into the Post Office Savings account ONLY ?
June 24th, 2010 at 5:00 am -
M V DESAI said:
IN POST OFFICE MIS DEPOSITS SCHEME THE INVESTMENT IS AS UNDER.
I JOINT WITH V . RS 1.20 LAKH
N JOINT WITH V . RS 1.80 LAKH
K JOINT WITH V .RS 3 LAKH
M JOINT WITH V . RS 3 LAKHKINDLY ADVISE ME WHETHER THE INVESTMENT OF THE V CAN BE CONSIDERED AS MORE THAN 3 LAKHS WHICH IS PRESCRIBED IN MIS DEPOSIT. I FURTHER CLARIFY THAT THE NAME OF THE V IS ADDED AS A MATTER OF CONVENIENCE AND NOT AS A INTEREST EARNER.
August 1st, 2010 at 3:03 am -
Shrikant Kulkarni said:
I have opened an account in POMIS on 7/4/2003 and it was matured on 3/4/2009. The government imposed tax on interest earned and bonus, in the financial year 2008-2009. My question is do I have to pay the IT on the bonus I received? Is the taxation applicable to the new account holders or old account holders also?
August 2nd, 2010 at 7:34 am -
mary said:
Sir,
Iwish to shift my residence from Gujarat to Kerala. We are having invest in Post office Monthly Income Scheme. What is proceedure of Transfer of POMIS scheme A/c to Kerala Post office. how much period will take to settle the transfer a/c.
Thanks
MaryAugust 27th, 2010 at 10:15 pm -
Muthu said:
Hi All,
I have one question regarding 5% Maturity Bonus. The period of MIS is 6 Years and do we get 5% Bonus every year till maturity ? or At one time only on maturity.
Clear my doubt.
thanks in advance
Muthurajan
September 1st, 2010 at 5:34 am
