2022 Latest Postal Service’s Monthly Income Scheme pricing schedule

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A monthly Income Scheme (MIS) is a type of investment plan that guarantees returns to investors at an interest rate of 6.60 percent annually. You can receive these returns as a set monthly income.

The Indian Postal Service’s investment program is called Post Office Monthly Income Scheme (POMIS). It guarantees the investor regular monthly income at a guaranteed return of 6.60 percent annually. Expert investors believe that MIS is one of the best investment strategies because it has three benefits: it protects your wealth, generates higher returns than debt instruments, and ensures a set monthly income.

Urban investors frequently are hesitant to invest in POMIS. Although it appears very archaic, the post office introduced banking services to India and continues to be the biggest provider of banking services in the nation. It has much greater credibility than any other type of investment because it is run by the Ministry of Finance.

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Important Elements of the Post Office Monthly Income Program

Transferring a POMIS account from one post office to another is possible. In addition, it is completely free.

You must open a different account for each post office deposit you make. The advantage is that one individual can create ‘N’ accounts (of course up to the upper limit).

Reinvesting in POMIS is an option for the maturity amount realized at the conclusion of the term.

An additional nominee for the investor’s Post Office Monthly Income Scheme account is permitted. As a result, in the terrible event of his passing, his nominee is now entitled to receive his money.

The good news is that your capital won’t be eaten up by TDS (Tax Deduction at Source) in this situation. The bad news is that these interest earnings are subject to taxation.

The MIS maturity period is 5 years. Ideally, you ought to take the money out after five years. You will receive a complete return on your investment at the conclusion of the term. Naturally, throughout this time you continue to receive your set monthly salary. What happens, though, if you need to remove the money before 5 years?

If you take the money back within a year, you get nothing.

Withdraw the amount within 1–3 years, and you’ll receive it back less a small 2 percent deduction (as a penalty)

Withdraw the deposit after three years; a modest 1 percent reduction will be made from it (as a penalty)

If you take the money back within a year, you get nothing.

Withdraw the amount within 1–3 years, and you’ll receive it back less a small 2 percent deduction (as a penalty)

Withdraw the deposit after three years; a modest 1 percent reduction will be made from it (as a penalty)

What is the POMIS Process?

It’s as simple as pie to invest in the Post Office Monthly Income Scheme, and there is very little paperwork needed. A copy of the investor’s identification documents, including their passport, PAN card, ration card, and voter identity card, as well as two passport-size photos, are required.

The investor needs to open an account in order to get started. He has the option of opening a joint account or an individual account. The minimum and maximum investment amounts for the Post Office Monthly Income Scheme are listed in the table below.

POMIS Eligibility Requirements

POMIS was created for risk-averse investors looking for a consistent source of monthly payments but strongly opposing equities instruments. Senior seniors and retired individuals who have just entered the no-paycheck zone and are prepared to make a one-time investment with the sole goal of obtaining a safe recurring income in order to continue their lifestyle are best suited for it. Simply expressed, the Post Office Monthly Income Scheme is for people who want a reliable source of income for the long term.

Revised Interest Rate for POMIS

The interest rate for the Post Office Monthly Income Scheme, which is paid monthly, has been sharply reduced from 8.40 percent to 6.60 percent. Prior to April 1, 2016, the interest rate was 8.40%. It is crucial to note that the interest income obtained through this program is taxed. There is also a monthly income scheme offered by the Post Office that allows people to invest up to Rs. 4, 50,000. His or her part of the joint accounts is included in this sum. Deposits in multiples of Rs. 1,000 are accepted, with Rs. 1,000 serving as the minimum.

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In conclusion

The Monthly Income Scheme is unquestionably a successful investment strategy that deploys capital effectively while earning you a guaranteed monthly income for the duration of the investment. Also included is the government’s unwavering support. It is understandable why risk-averse investors, retirees, and older individuals consistently select the Post Office Monthly Income Scheme.

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