Here is everything you need to know


The investment options offered by India Post are some of the most trusted systems out there. Although they offer a low return compared to other options, their risk-free nature and government support make them popular with investors, especially old-school ones. One such popular savings and investment option is the Post’s monthly income scheme. It enables you to invest a certain amount and earn a fixed monthly income. An account within the scope of this regulation can be opened at the nearest post office by submitting the required documents.

Lock-in period and other important functions.

The Post’s monthly income scheme has a five-year lock-up period, and you can choose to withdraw your investment or reinvest it when it is due. The fact that you can start investing from as little as 1,000 rupees makes it affordable and therefore very popular with middle- and low-income investors. In addition to the guaranteed returns offered by the Post, the system also offers tax benefits in accordance with the provisions of Section 80C of the Income Tax Act.

Investments and Interest

You can invest up to Rs 4.5 lakh individually or Rs 9 lakh together in the Post’s monthly income scheme. The government is adjusting the interest rate based on the market situation and has been set at 6.6% per annum for the quarter ending September 30, 2021. Investors have the option of withdrawing the interest directly from the post office or having it transferred to their savings account. The Post recently added the option to move the funds to a recurring deposit account.

In the case of an investment of Rs 4 lakh in this program, the investor receives a monthly income or a return of Rs 2000. At the end of the term, the investor can withdraw or reinvest the amount.

Selection criteria

The POMIS account is only available to a resident Indian. Any adult can open their account at the nearest post office by providing the required documents. POMIS accounts can also be opened for minors aged 10 and over. You can take advantage of it when you turn 18

Early withdrawal

The investment made in Post Office MIS can be withdrawn before the due date, but this will result in certain penalties. If an investor decides to withdraw his investment before the end of the first year, he is not entitled to any benefits. Any early departure between the 1st and 3rd year will be charged with a 2% penalty, if the member leaves between the 3rd and 5th year the entire corpus will be reimbursed with a 1% penalty.

Read all the latest news, breaking news and coronavirus news here. Follow us on facebook, Twitter and telegram.


Comments are closed.