POST OFFICE MONTHLY INCOME SCHEME (POMIS)

Having seen the PORD in the last post, let us see the POMIS.

Name of the Scheme : POST OFFICE MONTHLY INCOME SCHEME (POMIS)

Interest           : 8% monthly
Maturity Period : 6 years
Limit of Deposit
  Min : Rs. 1,500
  Max: Rs.4,50,000 for single Account & Rs.9,00,000 for joint Account

The maximum limit to be held by an individual will be the deposits in his/her single accounts together with his/her share of the deposits in the joint account which should not exceed Rs.4,50,000/-

Place of Deposit : Post Offices

Opening of Account

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  An account under the scheme may be opened by depositing Rs. 1500 or multiples thereof.
  
  
  
  
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  Any number of accounts may be opened under the scheme, but the total deposit shall not exceed Rs.4.5 lakhs in case of a single account and Rs. 9 lakhs incase of a Joint Account.
  
  
  
  
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  Account can be opened in any departmental post office and is transferable from one post office to another Nomination facility is available.
  
  
  
  

Mode of Deposit

Deposit may be made in cash or cheque or demand draft.
 
Payment of Interest

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  Deposit under this scheme shall bear interest at the rate of 8% per annum payable monthly.
  
  
  
  
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  Rs.60,000/- will fetch an interest of Rs. 390/- per month.
  
  
  
  

If so authorised monthly interest shall be deposited by the post office in the Savings Bank Account of the depositor at the post office where deposit has been made subject to the condition that by so depositing the interest maximum limit on balances in Savings bank Account is not exceeded.

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  The monthly interest from the account will be automatically deposited in the SB Account.
  
  
  
  
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  It will be credited on the business date immediately proceeding the due date falls on Sunday/holiday.
  
  
  
  
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  If the deposit made on 29th ,30th or 31st do not come in the following month, payment will be made on the last date of the following month
  
  
  
  

Premature Closure of Account

An investor may be permitted to withdraw the deposit and closure of the account, at any time after expiry of one year from the date of opening of the account subject to the condition that:

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  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 and
  
  
  
  
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  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.
  
  
  
  

Suggestion:

With the current Bank FD giving just less than 7%, it is better to get 8% in POMIS.

Here comes the double saving !! Invest in POMIS and the monthly income can be credited to the Saving Bank account with the Post Office. Give a standing instruction to debit your SB account to create a monthly Recurring Deposit. With the monthly interest in POMIS, create an RD.

Happy investing.

Cheers,

Gopal