Post Office Monthly Income Scheme's limit increased: Check deposit Limit, rate of interest and other details

Finance Minister Nirmala during Union Budget 2023-24 has announced the increase of deposit limit for the Post Office Monthly Income Scheme (POMIS). The deposit limit for the Post Office Monthly Scheme (POMIS) has been revised for a single account to Rs 4.5 lakh to Rs 9 lakh and Rs 15 lakh from Rs 9 lakh for joint account holders.

“The maximum deposit limit for Monthly Income Account Scheme will 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," said Nirmala Sitharaman while presenting the Union Budget 2023 in parliament.

Account holders in the POMIS are required to have an equal share in investments in joint accounts. Deposits can be made in multiples of Rs 1,000 for both individual and joint accounts.

Interest rate: 
For deposits made under the scheme, the current interest rate is 7.1% annually. Up until maturity, it is paid monthly. Account holders have the option of auto-crediting interest withdrawals into savings accounts.

Maturity:
Accounts may be closed after five years from the date of opening by submitting the required application form and passbook to the relevant Post Office.

The account may be closed and the money refunded to the nominee or legal heirs in the event that the account holder passes away before maturity. Interest will be paid up to the month before the refund is issued.

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