Why Invest in POMIS?
- The Ultimate Pension Substitute: POMIS is designed for retirees and conservative investors who need a fixed, guaranteed monthly income without subjecting their principal to stock market volatility.
- New Investment Limits: Recently, the government increased the maximum deposit limit. You can now invest up to ₹9 Lakhs in a single account, and up to ₹15 Lakhs in a joint account (e.g., with your spouse).
- Sovereign Guarantee: Unlike bank fixed deposits, which are only insured up to ₹5 Lakhs by DICGC, Post Office deposits carry an absolute sovereign guarantee by the Government of India. Your principal is 100% safe.
- Tax Implications: POMIS does NOT offer Section 80C tax benefits. Furthermore, the monthly interest payout is fully taxable according to your income tax slab. However, the Post Office does not deduct TDS on POMIS interest.