Post Office Monthly Income Scheme (POMIS): Overview

POMIS: Basics

• 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 rate of interest applicable on the POMIS?
  
The interest rate on investment in a POMIS is currently 8 per cent per annum, payable monthly. ......
• 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. ......

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POMIS: Opinion

• 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. ......
• 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. ......

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