When it comes to safe and steady investments, the Post Office Monthly Income Scheme (POMIS) stands out as a popular choice among Indians. It is an administration-backed savings scheme that provides a fixed monthly income to investors. Whether you're a regular investor or a senior citizen looking for a secure investment avenue, POMIS provides a reliable option.
It is a savings scheme offered by India Post, allowing individuals to invest a lump sum amount and receive fixed monthly payouts. It operates under the authority of the Indian government, assuring safety and reliability.
Anyone above 18 years of age can invest in POMIS. Additionally, joint accounts can be opened, and even minors can invest through guardians.
Investors can deposit a minimum of Rs. 1,500 and a maximum of Rs. 4.5 lakh individually or Rs. 9 lakh jointly in a POMIS account. The scheme has a fixed duration of 5 years.
The interest rates for POMIS are set by the government and are subject to change. As of the latest available information, the interest rate is around 6.6% per annum, payable monthly.
Interest earned through POMIS is taxable. However, there's no tax deduction at source (TDS) on the interest earned.
A POMIS calculator is a handy tool available online that helps investors estimate their returns. It takes into account the invested amount, interest rate, and tenure to calculate the monthly income.
To calculate the monthly income using the POMIS calculator, input the principal amount, interest rate, and duration of investment. The calculator then generates the estimated monthly income.
The POMIS calculator assists investors in planning their finances better by providing an approximate idea of the monthly income they can expect from their investments.
The Post Office Monthly Income Scheme serves as a reliable avenue for individuals especially senior citizens to secure a fixed monthly income. Its government-backed nature, coupled with consistent payouts, makes it a preferred choice for risk-averse investors. Utilising tools like the POMIS calculator can aid in better financial planning and estimation of returns. For those seeking stability and regular income, POMIS remains a cornerstone in the realm of secure investments.
While your POMIS corpus may be a good place to start saving up for retirement, you also need to diversify your portfolio with other assets to meet different life goals. Users can find several investment options on the Fi app. Be it short-term or long-term — it's easy to invest with a simple swipe of your phone's screen. Fi also offers a Peer-to-Peer investment feature called Jump! Jump can help you earn up to 9% p.a on your investment. But if you want to save up for a short-term goal & earn interest on it, select our super-flexible Smart Deposit. If you're looking for higher/stable returns, opt for a Fixed Deposit.
POMIS is a savings scheme offered by the Indian postal service. It allows investors to deposit a lump sum amount and receive a fixed monthly income in the form of interest payments.
The maximum investment limit for a single account is ₹4.5 lakhs for an individual and ₹9 lakhs for joint accounts while the minimum investment allowed in POMIS is ₹1,500.
The interest rate for POMIS is subject to change and is declared by the government. As of my last update, the interest rate was around 6.6% per annum, payable monthly. These rates can be revised quarterly.
The interest earned through POMIS is taxable. It's added to the investor's income and taxed at the individual's applicable income tax slab rate. However, there's no TDS (Tax Deducted at Source) on the interest earned.
The maturity period for POMIS is 5 years. Premature withdrawals are allowed after one year, but with certain penalties and restrictions. If withdrawn between 1 year to 3 years, a deduction of 2% of the deposit amount is levied. If withdrawn after 3 years but before maturity, a deduction of 1% of the deposit amount is charged.