The Post Office Monthly Income Scheme is a government small savings scheme
The Union Budget 2023-24 was presented by Finance Minister Nirmala Sitharaman in Parliament on Wednesday. Among the various announcements made, the deposit limit for the Post Office Monthly Scheme (POMIS) has been revised. The limit has been increased from the existing Rs 4.5 lakh to Rs 9 lakh for a single account.
The Post Office Monthly Income Scheme is a government small savings scheme which allows account holders to deposit a certain amount and get a steady monthly income in the form of interest.
A Post Office Monthly Income Scheme Account can be opened by an individual with a minimum deposit of Rs 1,000. A joint account can also be opened by up to three adults where the minimum deposit remains the same.
The maximum deposit that can be made in a single MIS account was Rs 4.5 lakh while the limit was Rs 9 lakh for a joint account. Now, the maximum deposit limits have been increased to Rs 9 lakh for single accounts and Rs 15 lakh for joint accounts.
“The maximum deposit limit for Monthly Income Account Scheme will be enhanced from ₹4.5 lakh to ₹9 lakh for a single account and ₹9 lakh to ₹15 lakh for a joint account,” the Finance Minister said in her budget speech.
In the POMIS, account holders must have an equal share in investment in a joint account. Deposits in both single and joint accounts can be made in multiple of Rs 1,000.
Interest rate
The current interest rate for deposits made under the scheme is 7.1% per annum. It is paid on a monthly basis till maturity. Account holders can withdraw the interest through auto credit and transfer it in their savings account.
Maturity
A POMIS account can be closed after the completion of five years from the date of opening the account. If the account is closed after one year of opening and before the completion of three years, then a deduction will be made from the principal amount at 2%. If the account is closed after three years of opening and before the completion of five years, then the principal will be subject to a deduction at 1%. The reaming amount will be paid to the account holder.
