New Delhi: Are you looking for a safe investment option that ensures regular monthly income backed by the government? The Post Office Monthly Income Scheme (POMIS) is an excellent choice for anyone seeking financial stability, whether you’re planning for retirement, supplementing your income, or growing your savings.

What Is Post Office Monthly Income Scheme?The Post Office Monthly Income Scheme is a government-backed small savings plan designed to provide guaranteed monthly payouts. Post Office Monthly Income Scheme: Key FeaturesMinimum Deposit: Rs 1,000 or in multiples of Rs 1,000.Maximum Deposit: Rs 9 lakhs for a single account, Rs 15 lakhs for a joint account.Tenure: 5 years (fixed) Post Office Monthly Income Scheme: Latest Interest Rate For 2024POMIS currently offers a competitive annual interest rate of 7.4 per cent. Who Can Open A POMIS Account?- Individual adults (single account holders)- Joint accounts (up to 3 adults)- Guardians on behalf of minors or individuals with unsound minds- Minors above 10 years can open accounts in their name Monthly Payout CalculationYour monthly income from POMIS depends on the amount deposited. Here’s how to calculate it: FormulaMonthly Income = Deposit Amount × Interest Rate ÷ 12Examples:Rs 5 lakhs -- Rs 3,083 per monthRs 9 lakhs -- Rs 5,550 per monthRs 15 lakhs -- Rs 9,250 per monthThe returns remain fixed throughout the 5-year tenure. Salient Features of POMIS 1. Deposit Guidelines- Open an account with a minimum of Rs 1,000.- The total deposits across all accounts of a single individual cannot exceed Rs 9 lakhs.- Joint accounts allow investments up to Rs 15 lakhs, shared equally among account holders. 2. Interest Payments- Interest is credited monthly.- Payments can be received via ECS or auto-credited to a linked savings account.- Unclaimed interest does not earn additional interest.- Interest income is taxable.

3. Premature Withdrawal- Allowed after one year but comes with penalties:1–3 years: 2 per cent of the deposit is deducted.3–5 years: 1 per cent of the deposit is deducted. 4. Maturity Benefits- Accounts mature after 5 years, after which the principal is refunded.In case of the account holder’s death, the nominee or legal heir can close the account and receive the interest accrued until the month preceding closure.( Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. Times Now Digital suggests its readers/audience to consult their financial advisors before making any money-related decisions.)