Post office Monthly Income Scheme (POMIS)

November 5, 2009

Investments, Post Office Savings

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

Update: Revised Post Office Savings Interest Rates

The following is the list of facts about the POMIS investment.

  • It has the lock in period of 6 years.
  • 8% Interest Rates offered (Update: Revised to 8.2%)
  • 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 (Update: Discontinued)

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-drawn 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). This would be more suitable for the people who are retired and want to earn the monthly income. Please read this article to know about updates information on the post office savings. I am looking for the feedback from you. Thank you for reading this article.

Subscribe to our future articles here.
email
, , , , , , ,

49 Responses to “Post office Monthly Income Scheme (POMIS)”

  1. rahul Says:

    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

    Reply

  2. Dhaval Says:

    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
    Dhaval

    Reply

  3. rahul Says:

    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

    Reply

  4. dhruva Says:

    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.html

    see 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.

    Reply

  5. Ashish Handa Says:

    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 ..

    Reply

  6. dhaval Says:

    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.
    Thanks

    Reply

  7. dhaval Says:

    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.
    Thanks

    Reply

  8. krishnas Says:

    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,
    Krishna

    Reply

  9. chandrasekhara reddy thota Says:

    pl let me know the provisions relating to IT on the interest earnings from POMIS.

    yours truly,

    T.CHANDRASEKHARA REDDY

    Reply

  10. Viinod Says:

    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
    Viinod

    Reply

  11. Vasava Says:

    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 account

    Thank you in advance

    Reply

  12. sivaraman Says:

    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,
    sivaraman

    Reply

  13. sivaraman Says:

    Please send answer to my earlier query regarding certificate issued when invested in pomis account.

    Reply

  14. Amit Phatak Says:

    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 ?

    Reply

  15. M V DESAI Says:

    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 LAKH

    KINDLY 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.

    Reply

  16. Shrikant Kulkarni Says:

    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?

    Reply

  17. mary Says:

    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
    Mary

    Reply

  18. Muthu Says:

    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

    Reply

  19. siva Says:

    I have a doubt regarding the POMIS interest payment.
    Can the monthly interest be credited to my savings Account with HDFC bank or will I be required to open a savings acct with the post office to get the monthly interest credited ?
    Reg

    Reply

  20. Muthu Says:

    Dear Shiva,

    The answer for your question:Can the monthly interest be credited to my savings Account with HDFC bank? is definitely ‘NO’

    You can open a SB account with the same Post Office and given specified instruction to transfer the interest to the SB account with the same P.O. Also you can open a R.D. in which you can transfer the amount form SB to R.D.

    Note: All the Account POMIS – S.B. and R.D. should be maintained with the same Post office.

    regards

    Muthurajan Marcus.

    Reply

  21. Amit Phatak Says:

    @siva – YES! you can opt for a ECS facility whereby your monthly interest amount will be credited to any savings account of your choice (here HDFC). After you open the POMIS account, you need to fill up the ECS form, attach a blank cheque of your HDFC savings account and you’re all set. You don’t need to open a Savings account at the Post office just for credit of monthly interest.

    The information I’ve given here is authentic, because I’m personally using the ECS facility.

    @Muthu – Please check your facts before saying “definitely NO” (No offence meant)

    Reply

  22. Rajesh Altekar Says:

    @Amit Phatak – I fully agree with you. Even i was using the ECS facility with HSBC. It was seamless and trouble free.

    @Muthu – Please be careful and dont misguide people.

    Reply

  23. Muthu Says:

    @ Rajesh Altekar

    First of all I beg sorry for the quote

    See whatever I said except that “The answer for your question:Can the monthly interest be credited to my savings Account with HDFC bank? is definitely ‘NO’ ” is all right only.

    You can avail the other offers from the Post Office itself.. If right reply back otherwise apologize..

    thanks
    Muthurajan Marcus

    Reply

  24. devendra nath virmani Says:

    i am having a pomis account in joint name of my wife and son and also a saving bank account in same post office in the same names but with an additional name of mine i.e. the sb a/c is in three names. i requested the postmaster to automatically transfer the mis interest to my saving account but this was denied by postmaster on the grounds that names in both the accounts i.e. pomis and saving bank should be same and no additional name should be there. he showed me this rule on the monitor screen but it does not mention there cannot be additional name. please clarify if the denial is in order.

    Reply

  25. ANAND Says:

    IS MATURITY BONUS ON PO MIS IS TAXED UNDER CAPITAL GAIN OR UNDER OTHER SOURCES . EXPLAIN WITH REASONS

    Reply

  26. sangeeta Says:

    If a min.amount of Rs.10,000/- is locked for a period of 6 years
    what income we will get montly on it and after completion of 6 years.

    Reply

  27. RAMA SASTRY Says:

    Sir, My wife and son Jointly deposited an amount of Rs.3,00,000 Under POMIS on 23-4-2005 and getting matured on 23-4-2011. I req

    Reply

  28. RAMA SASTRY Says:

    Sir,
    My Wife and son jointly Opened POMIS on 22-4-2005 for an amount of Rs.3,00,000/- and getting matured om 23-4-2011 and on maturity I reuested the Postmaster to Deposit the Same Amount+Bonus in SB A/c of the same PO which My Wife and son Jointly maintain, The Post Master refuses to credit the total amount of Rs.3,30.000/- and he accept only 2,00,000/- to credit in
    SB and advised me to withdraw in cash which the depositor does not
    like. Now the Question is whether my request to credit the entire amount could be done or not when a letter to this is given to the post master.

    Reply

  29. RAMA SASTRY Says:

    Sir,
    My Wife and son jointly Opened POMIS on 22-4-2005 for an amount of Rs.3,00,000/- and getting matured om 23-4-2011 and on maturity I reuested the Postmaster to Deposit the Same Amount+Bonus in SB A/c of the same PO which My Wife and son Jointly maintain, The Post Master refuses to credit the total amount of Rs.3,30.000/- and he accept only 2,00,000/- to credit in
    SB and advised me to withdraw in cash which the depositor does not
    like. Now the Question is whether my request to credit the entire amount could be done or not when a letter to this is given to the post master.
    Can the matured amount of Rs.3,30,000/- could be Credited in the Savings A/c on the date of maturity or not

    Reply

  30. Mayank Says:

    I wish to open an account in POMIS, correct me if I am wrong,
    I would have a single account, so I can deposit 450000 for 6 years.
    I would need to open an SB A/c and will also get a pass book.
    I would get 8% interest per annum.
    So 3000 per month.
    I wish to deposit this 3000 in recurring account, so I need to open another RD A/c.
    Now I will have 2 A/c’s One SB A/c and another RD A/c.
    Can you please tell me the interest on RD A/c and the interest on SB A/c
    What would be the final amount that I would get after 6 Years

    Reply

  31. y vijay Says:

    hi
    i am deposited 1000 per month in recurring deposit in post office for 3 years and i discontinued for rest period. so i want the maturity amount and interest applicable for such period ie., 7.5% or any interest. so kindly give me the maturity amount and interest applicability on deposited amount.
    y vijay

    Reply

  32. ashwini Says:

    I am a housewife with no income, i want to deposit amount of 450000 in an account and income interest every month directed to post office saving account, i want to open 3-4 accounts with same amt, will this make me pay tax to govt, if yes then will the tax be paid on monthly interest or whole amt invested? is tax to be paid yearly?

    Reply

  33. prakash Says:

    Can a Post office MIS joint account be converted to individual account in the name of the first holder by giving joint representation

    Reply

  34. mvs sarma Says:

    Whether the BONUS on PO MIS is taxcable?

    Reply

  35. Cavin Says:

    I wish to open an account in POMIS,in a single account of Rs.450000 for 6 years.
    I would get 8% interest per annum.
    So 3000 per month.
    I wish to deposit this 3000 in recurring account, so I need to open another RD A/c.
    Can you please tell me the interest on RD A/c and the interest on SB A/c
    Could please let me know how much tax will be deducted?

    Reply

  36. Roshni Bhatia Says:

    Also, maturity period is 5 yrs now.

    Reply

  37. Vince Souza Says:

    Hi!Amit Phatak, Namashkar!! Boss, hope u r doing fine. Understand from ur info on ECS, it’s got to be authentic. Thought I’d put forward this query of mine which none of the feedback personnel have requested a “know how” in this matter.
    I opened a PO MIS A/c worth 900,000/- on 18/03/2008, jointly with my children and receive 6,000/- per month My queries are:-
    1) After maturity on 18/07/2009, due to a chronic disease, I inadvertently forgot to renew the said A/c. Then on 29/03/2010 when I applied for renewal, I was penalized by Rs.6000×8= 48,000/- i.e., (Aug, Sept, Oct, Nov, Dec’2009, Jan 2010, Feb, Mar) no (0) interest earned. I did not close the A/c, so the Principle of Rs.900,000/- was in the PO MIS safe custody, on which the PO benefited on my loss. Does any PO MIS rule/law support this genuine cause which covers this penalization?
    Is it justified to deprive me of my hard earned retirement money.
    However on renewal, I was paid a paltry sum by way of Bonus.
    Albeit, failing to renewing the PO MIS A/c does not mean that the A/c was closed. This system is akin to the Chinese great Scholar, Confucius whose scholastic theory was that “failing to plan is planning to fail”

    2) The recent Interest increment by 0.2%, is it applicable to Holders holding this A/c before the increment declaration?
    Kindly advise me on a method of retrieving that money
    Thanking you in anticipation at your earliest convenience.
    Take care! = Vince

    Reply

  38. Amit Phatak Says:

    @Vince Souza:

    About 1) If you opened your POMIS account on 18/03/2008, how can it “mature” on 18/07/2009 ? Just after 1 year 4 months?? POMIS is a 6 year scheme. So yours will mature on 17/03/2014.

    About 2). The increment of 0.2% is not applicable to old accounts. Only for those accounts opened after the effective date of increment.

    Reply

  39. Mrs. Tressy Richard Peris Says:

    Sir, I want to become advisor in this post-office Invest Scheme. please can you advise me.. what is the procedure..?

    Reply

  40. RAJA Says:

    Sir,

    I reviewed POSB manual (first edition- corrected 31 Dec 2006)and it did not mention that NRIs are not allowed in POMIS. Where as in other schemes such as KVP etc. it is categorically stated that NRIs are NOT allowed. Please clarify.

    Reply

  41. praveen Says:

    if i am correct, the maximum limit of Rs.4,50,000 for single person in MIS post office holds for a single financial year.
    example: if i invested Rs.4,50,000 for financial year 2010-2011.
    can i invest Rs.4,50,000 for financial year 2011-2012.

    Or the maximum limit is for some particular duration.

    Thanks in advance.
    Praveen

    Reply

    • RAJA Says:

      Praveen, your assertion is WRONG. All you can invest only Rs 4,50,000/- as individual. It is not related to Financial Year.

      Reply

  42. SATISH Says:

    LIST OF MIS BONUS
    FOR eg
    12 JAN 2001 TO31 MAR 2003 TO TILL DATE i KNOW HOW MUCH BONUS WAS FROM ABOVE DATE TO TILL DATE

    Reply

  43. Vincent S. D'Souza Says:

    Hi! Rahul,
    It;s nice to know that U do this social service of sort out ontricacies
    involving the P.O. MIS Scheme. I’ve invested Rs.900,000/- joint with my
    children since 15 years now with 2 renewals.
    Recently, the P.O. hiked the interest rate to 8.2% for new investors, only. I being a 15yr old member of the club, I still earn only 8% which a shame for reasons:-
    1) Partiality 2) I am a Senior citizen.
    On enquiry with P.O. the Postmaster says “I don’t know why”.
    Appreciate your kind help.
    Thanks & regards
    Vince

    Reply

  44. Amardeep Jogdand Says:

    R/sir,

    maine mera MIS account june-2012 me renew kiya hai lekin kuch niji kaam ke liye muze ye account band karna hai,so please what is the procedure to cancel the MIS account?

    Reply

  45. Naresh Kumar Says:

    I have taken two Monthly Income Scheme, one on joint account with my Mrs for RS. 4.5 Lakhs in the year, 2008 and following that in the year 2009 I had taken one more MIS for RS. 4.5 Lakhs on my name. The first scheme is getting matured in the September this year i.e, 2014 and the second one in the month of May 2015. Couple of months back I had given an application for conversion of individual account to as joint account. We have been getting the interest for both the accounts. This month I was informed that I have get one account terminated as the data of all the schemes is being computerized and I have to pay the penalty for having two accounts. In this regard I have been advised that immediately terminate one account. Both the accounts have the provision of Bonus. If I surrender one of the account then I will have to fore go the 1% as the penalty for early closure and loose around Rs 22500 for not getting the Bonus. I am retired employee and heavily bank on the interests from the amounts I have deposited my life saving in different Govt. schemes.
    PL Advice
    Regards
    (Naresh Kumarr

    Reply

Leave a Reply

Current month ye@r day *