Even minors above 10 can open an account beneath put up workplace month-to-month revenue scheme
3 min readAs the federal government has saved rates of interest on small financial savings schemes unchanged for the quarter ending 30 September, the five-year month-to-month revenue scheme will fetch an rate of interest of 6.6% each year, payable month-to-month.
The put up workplace month-to-month revenue scheme (POMIS) is a financial savings scheme, whereby you possibly can make investments a certain quantity and earn a set curiosity every month. One can open such an account in any put up workplace.
Any Indian resident can open a POMIS account. Also, as much as three adults can collectively open such an account. Besides, any minor above 10 years of age can open a POMIS account in his/her identify.
DepositsThe minimal sum required to open this account is ₹1,000. But, you possibly can deposit a most of solely ₹4.5 lakh in a single-holder account; the restrict is ₹9 lakh in a joint account, by which all holders have equal share within the funding.
InterestIt is important to notice that the curiosity is paid on completion of a month from the date of opening an account and it continues until maturity. If you don’t declare the curiosity paid each month, such curiosity wouldn’t earn any extra curiosity. Moreover, any deposit in extra of the fastened limits can be refunded. The extra sum deposited fetches curiosity solely on the put up workplace financial savings account fee and it could be relevant from the date of opening of the account to the date of reimbursement or refund.
You may withdraw the curiosity by way of auto credit score into your financial savings account. You may give standing directions on the put up workplace or get it paid by way of the digital clearing system. Besides, it’s essential to know that the curiosity is taxable as soon as obtained. This signifies that the curiosity quantity shouldn’t be coated beneath part 80C of the Income Tax Act.
MaturityYou can shut the account after 5 years by submitting the prescribed utility type together with your passbook on the put up workplace the place you might have opened the account. However, for those who die earlier than maturity of the POMIS account, it may be closed, and the deposits refunded to your nominee or authorized heirs. In that case, the curiosity can be paid as much as the previous month, by which a refund is made. While opening an account, it’s essential to nominate any one among your loved ones members, in order that in case for those who die throughout the account’s time period, they will declare the advantages.
You should additionally know that no deposit might be withdrawn earlier than the expiry of 1 12 months from the date of deposit. However, if an account is closed prematurely after one 12 months and earlier than three years, a deduction of two% from the principal can be made, and the remaining sum paid to you.
If the account is closed between three and 5 years, a deduction of 1% from the principal can be made, and the remaining quantity can be paid to you.
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