Last Update: February 02, 2023, 10:57 IST
A Post Office Monthly Income Scheme account can be opened by an individual with a minimum deposit of Rs 1,000.
Post Office Monthly Income Scheme is a Government Small Savings Scheme
Finance Minister presented the Union Budget 2023-24 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 for a single account has been raised to Rs 9 lakh from the existing Rs 4.5 lakh.
Post Office Monthly Income Scheme is a government small savings scheme that allows account holders to deposit a fixed amount and receive 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 amount remains the same.
A maximum of Rs 4.5 lakh can be deposited in a single MIS account while the limit was Rs 9 lakh for a joint account. Now, the maximum deposit limit has been raised 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 increased from ₹4.5 lakh to ₹9 lakh for single account and from ₹9 lakh to ₹15 lakh for joint account,” the finance minister said in his budget speech.
In POMIS, account holders must have an equal share of investments in a joint account. Deposits can be made in multiples of Rs 1,000 in both single and joint accounts.
Rate of interest
The current rate of interest for deposits made under the scheme is 7.1% per annum. It is paid on a monthly basis till maturity. Account holders can withdraw interest through auto credit and transfer it to their savings account.
maturity
POMIS account can be closed after completion of five years from the date of account opening. If the account is closed after one year of opening and before completion of three years, 2% will be deducted from the principal amount. If the account is closed after three years of opening and before the completion of five years, the principal will be subject to a deduction of 1%. The reaming amount will be paid to the account holder.
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