In the Union Budget 2023–24, Finance Minister Nirmala announced a hike in the deposit cap for the Post Office Monthly Income Scheme (POMIS). The Post Office Monthly Scheme (POMIS) deposit cap has been increased from Rs 4.5 lakh to Rs 9 lakh for single accounts and from Rs 9 lakh to Rs 15 lakh for joint account holders.
When introducing the Union Budget 2023 in parliament, Nirmala Sitharaman stated, “The maximum deposit limit for Monthly Income Account Scheme would be enhanced from Rs 4.5 lakh to Rs 9 lakh for single account and from Rs 9 lakh to Rs 15 lakh for joint account.”
All POMIS account holders must contribute equally to investments made in joint accounts. Deposits can be made to both individual and joint accounts in multiples of Rs 1,000.
Interest rate:
The current annual interest rate for deposits placed under the plan is 7.1%. It is paid monthly till maturity. The option exists for account users to automatically credit interest withdrawals to savings accounts.
Maturity:
Account closing is possible five years after the account was first opened by submitting the necessary application form and passbook to the relevant Post Office.
If the account holder passes away prior to maturity, the account may be cancelled and the funds refunded to the nominee or legal heirs. Up until the month before the refund is given, interest will be paid.
