Post Office Monthly Income Scheme (POMIS) is a popular savings scheme offered by the Indian Postal Service. It is a low-risk investment option that provides regular monthly income to investors, making it an attractive choice for those looking for a stable and safe investment.
POMIS is designed to provide a regular source of income to investors for a period of five years. The minimum investment amount for this scheme is Rs. 1,000, and the maximum investment limit is Rs. 4.5 lakhs for a single account and Rs. 9 lakhs for a joint account. The interest rate for POMIS is currently 6.6% per annum, payable monthly.
One of the biggest advantages of POMIS is its low risk. As the scheme is backed by the Indian government, the investment is considered safe and secure. Additionally, the interest rate is fixed, which means that investors can be assured of a steady income every month.
Investors can open a POMIS account at any post office in India. The application process is simple, and investors are required to submit the necessary documents, such as identity proof, address proof, and a passport-sized photograph. Once the account is opened, investors can start depositing funds, and the monthly interest is credited directly to their savings account.
POMIS has certain restrictions that investors need to be aware of. For example, premature withdrawal of funds is not allowed before the completion of one year from the date of account opening. If the funds are withdrawn before the completion of three years, a penalty of 2% of the deposit amount is charged. After three years, the penalty reduces to 1%. Additionally, the interest earned on POMIS is taxable, and investors are required to pay tax on the income earned from this scheme.
In conclusion, POMIS is a safe and attractive investment option for those looking for a regular source of income. It is particularly useful for retirees and senior citizens who require a stable income without taking on too much risk. With its low investment amount and simple application process, POMIS is an easy and accessible option for all types of investors. However, investors should also be aware of the restrictions and tax implications associated with this scheme before making an investment decision.
To open a Post Office Monthly Income Scheme (POMIS) account, investors are required to submit the following documents:
- Account opening form: Investors need to fill out the account opening form, which is available at any post office in India.
- Identity proof: Investors need to provide a self-attested copy of a valid identity proof, such as Aadhaar card, PAN card, passport, driving license, voter ID, or any other government-issued ID card.
- Address proof: Investors need to provide a self-attested copy of a valid address proof, such as Aadhaar card, passport, driving license, voter ID, or any other government-issued ID card.
- Passport-sized photograph: Investors need to provide two passport-sized photographs.
It is important to note that the above documents need to be self-attested by the investor. Additionally, investors are required to submit the original copies of the documents for verification purposes.
Investors also need to provide a nominee for their POMIS account. The nominee can be any person, including a family member or a friend. In case of the investor’s death, the nominee will receive the invested amount and the interest accrued.
In summary, investors need to provide the account opening form, a valid identity proof, a valid address proof, and two passport-sized photographs to open a POMIS account. Additionally, they need to nominate a person as their nominee for the account. It is important to ensure that the documents are self-attested and that the original copies are provided for verification purposes.
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