Kolkata: The Post Office Monthly Income Scheme (POMIS) is popularly referred to as POMIS or simply MIS. It is a government-backed deposit scheme that provides interest payments every month. Thus it is a fixed-income instrument that enjoys sovereign guarantee and thereby ensures the highest safety of capital. One can open a POMIS account either individually or jointly.
Many of those who are averse to taking risks and dislike the complicated world of equity and equity-linked investments put their money into POMIS. It is mostly popular with the elderly and the retirees, who don’t have a regular income from some kind of work. Why is the instrument so popular even in this age of superlative returns from the equities and mutual funds? Let’s have a look.
What is the MIS interest rate in post office?
The interest rate payable by MIS stands at 7.4% currently. The interest is payable on completion of a month from the date of opening and is payable till maturity. However, if the interest is not collected by the account holder every month, it will not earn any interest in the subsequent months. The interest can be taken out through auto credit into savings account at same post office, or ECS.
Minimum and maximum deposit in POMIS
One has to deposit a minimum amount of Rs 1,000. Further amounts have to be in multiples of Rs 1,000. One can deposit a maximum amount of Rs 9 lakh in a single account and 15 lakh in joint account. If an account is opened by a guardian on behalf of a minor, its limit will be treated separately.
Is POMIS tax free?
The interest under POMIS is taxable in the hand of depositor at his/her slab rate. The POMIS account can be closed after expiry of 5 years from the date of opening. One has to submit an application along with the passbook. In the event of the account holder dying before the maturity of the account, it may be closed and entire amount will be handed over to the nominee/legal heirs. Interest will be paid till the month preceding the death.
What is Rs 9 lakh MIS in post office?
By using a Post Office MIS calculator, once can easily estimate their monthly interest from the scheme. This calculator is available online for free and prominent agencies offer this calculator. Such a calculator will show that if one invests Rs 9 lakh in POMIS, the interest payable monthly will be Rs 5,550. Similarly, a monthly interest of Rs 9,250 will be paid to the joint holders of an account where Rs 15 lakh is invested.
The Post Office Monthly Income Scheme (POMIS) comes close to a monthly pension scheme. See the interest rate it offers and other benefits that it delivers to millions regularly across the country. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
