• By Aditya Jha
  • Sun, 17 Nov 2024 03:01 PM (IST)
  • Source:JND

While everyone is looking for a safe investment option, ensuring regular income and low risk, there are very few options that can assure both. However, here is a government-backed solution that will grow your savings securely. The Post Office Monthly Income Scheme (POMIS) is a saving scheme with lucrative interest rates and monthly payouts. Capital protection is one of this scheme's primary advantages, which makes it a safe option for savings. 

Deposit
The account can be opened for a minimum of Rs. 1000 and multiples of Rs. 1000. While a single account can only hold a maximum amount of Rs 9 lakh, a joint account can hold up to Rs 15 lakh. Each joint holder receives an equal share of the investment in a joint account. The limit for an account formed on behalf of a minor as guardian will be separate. The interest rate for this quarter is 7.4% per annum payable monthly. Interest is paid on completion of a month from the date of opening and so on till maturity.

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According to the India Post website, “If the interest payable every month is not claimed by the account holder, such interest shall not earn any additional interest. In case any excess deposit is made by the depositor, the excess deposit will be refunded back, and only PO Savings Account interest will be applicable from the date of opening of the account to the date of refund."

Pre-mature closure charges
An individual is eligible to withdraw the amount after one year. However, you will be charged a 2 per cent deduction on your deposit if you withdraw before three years. You will be charged with a 1 per cent deduction after three years.

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Maturity
An individual can officially close the account after 5 years from the date of opening by submitting the necessary application form along with the pass book to the relevant post office. The account may be canceled, and the sum is refunded to the nominee/legal heirs if the account holder dies before maturity. Interest will be paid up to the prior month in which the refund is issued.

Important note: Investment decisions should be taken after consulting certified financial experts. India Post can change the policies as per the announcements by the government from time to time.