What Is Post Office MIS? Everything You Need To Know About This India Post MIS Scheme

India Post provides the Post Office Monthly Income Scheme (POMIS), a kind of risk-free small savings plan. It allows investors to save a particular amount every month. Subsequently, the scheme offers interest payments each month and is suitable for those looking to generate recurring or supplemental income from their investments.

There are many different schemes with set returns available. The schemes are supported by the Indian government, which is the greatest part. While there are many other fixed income and equities investing options, post office MIS represents a safe investment choice.

Let us take a closer look at how the Post Office Monthly Income Scheme works.

Investment in the Post Office Monthly Income Scheme is simple as pie and needs very little paperwork. All the investor needs to do is send copies of their identification documents. They are:

• Proof of address

• Ration card

• PAN card

• Passport

• Voter identity card

• Passport size photos

The investor can create an account after providing the necessary documentation. He has the option of opening a single or joint account for that. The investor can take the money directly from the post office or have it put into their savings account in order to withdraw it. However, the funds are often intended for monthly withdrawals.

1. Lock-in Period: The POMIS comes with a 5-year lock-in period. Additionally, investors can also choose to reinvest in the same plan if they choose so after the maturity period.

2. Minimum & Maximum Deposit Amount: One can open a post office monthly income scheme account with at least INR 1000. Further, the sum should be a multiple of 100. Due to the low and restricted premium pay, it makes an affordable savings plan.

For maximum account deposit, a single account holder can deposit up to INR 4.5 lakhs. This threshold rises to INR 9 lakhs for joint accounts.

3. Nomination Facility: An option to choose a nominee is available and can also be updated later after creating an account by the beneficiary. However, the beneficiary cannot get the benefits until the account holder has passed away.

4. Low Risk: A secure investment that provides returns is offered after the maturity term. This plan has a risk level that is practically zero.

5. Transferrable: You can migrate your POMIS account to a neighbouring post office if you're moving to a different city in India and altering your residential status. Subsequently, your POMIS investment fund and interest disbursal will be transferred to such a post office.

6. Regular payments: This scheme is a desirable investment option for people wishing to generate money frequently due to the regular interest payments.

• Option To Reinvest

  You can choose to put the interest you earn into high-yielding assets like stock funds. These investing possibilities, however, come with somewhat larger risks.

• Stable Returns

  Your investment portfolio can help you generate a consistent monthly income regardless of market changes. The post office has set a 6.6% p.a. interest rate.

Since a POMIS account cannot yet be opened online, you will have to stop by the closest post office.  Then, follow the given steps below:

Step 1: First you must open a Post Office savings account

Step 2: Complete the application form completely and attach copies of all needed documentation that has been self-attested. Bring the originals with you when submitting them so they may be verified.

Step 3: List the nominees' names, dates of birth, and phone numbers (if any)

Step 4: Begin making your first deposits with cash or a cheque. When a payment is made with a check, the account opening date will be the date the check is received.

The Monthly Income Scheme is unquestionably a powerful investing tool that allocates money effectively to generate assured monthly income for you over the course of the investment period. Further, it has the government’s unwavering support, making it a favourite of seniors and retirees.

This article does not intend to pass on any financial advice and BQ Prime does not endorse any of the funds/schemes mentioned above. Please invest at your own discretion.