FAQ on Monthly Income Scheme (MIS) from Post Office What is the rate of interest applicable on the POMIS?

The interest rate on investment in a POMIS is currently 8 per cent per annum, payable monthly.

What is a post office monthly income scheme? The post office monthly income scheme (POMIS), as the name suggests, is a scheme that provides monthly income (currently at 8 per cent p.a) to investors.

What is the minimum and maximum amount required to open a post office monthly income scheme account? While the minimum investment amount in a POMIS is Rs.1500 or in multiples thereof; the maximum amount is Rs. 4.5 lakh in a single account and Rs. 9 lakh in a joint account.

Is there any additional benefit other than monthly payouts on investment in a post office monthly income scheme? A bonus of 10 per cent is payable on a maturity period of 6 years in a POMIS investment.

What are the consequences of exit from a post office monthly income scheme (POMIS)? Exit after 1 year will entail a loss of 5 per cent of the amount invested. As a result, while the investor would not suffer any loss in interest earnings, the loss of principal can be high.

Will the post office monthly income scheme offer encashment on account closure before maturity? There is the facility of premature closure of the account after 1 to 3 years, at a 2 per cent discount.

Can everybody open a post office monthly income scheme (POMIS) account? A POMIS account can be opened by an individual, two/three adults jointly, and a minor through a guardian.

Is the interest paid by the post office toward the post office monthly income scheme (POMIS) subject to tax deducted at source (TDS)? No, TDS is not applicable on the interest paid by the post office toward POMIS.

Can a non-resident Indian (NRI) or a Hindu Undivided Family (HUF) open a post office monthly income scheme (POMIS) account? NRIs or HUF cannot open a POMIS account.

Is there a minimum age for a minor to open a post office monthly income scheme (POMIS) account? A minor has to be at least 10 years of age to be able to have a PO MIS account in his/her own name directly.