Account opening rules
A single adult, within the limit of three people under common names, a minor over ten years old, a guardian in the name of a minor, or an insane person can establish the account by submitting the account opening form to any Office station. Under this system, an individual can open and manage one or more accounts in a single account or in a joint account, subject to the contribution limit. The account holder’s contribution of the amount of a joint account is considered to be half or a third of the deposit, as if the account were held by two adults or three adults, for the purposes of the maximum deposits indicated below.
POMIS can be established with a minimum deposit of one thousand rupees or an amount in multiples of one thousand rupees, and each account can only have one deposit. A total of four lakh fifty thousand rupees can be deposited into a single account, and nine lakh rupees can be placed in a joint account by the account holders. This indicates that the total deposits of an individual in all accounts should not exceed Rs 4.5 lakhs in a single account and Rs 9 lakhs in a joint account, respectively.
Interest on deposit rules
The current interest rate on the deposit made under this scheme is 6.6 percent per annum, payable monthly. At the end of one month from the opening date of the account, interest will be paid to the account holder. If the account holder does not claim the monthly interest, the interest will no longer accrue. If an account holder deposits an amount in their account that exceeds the upper limit mentioned above, the responsible post office will return the excess deposit to the account holder.
The excess deposit will bear interest at the rate in effect on the postal savings account at the time of the contribution and will be payable to the depositor on this excess. Interest is payable from the deposit of the excess until the end of the month preceding that in which the contribution is reimbursed to the account holder. The amount of taxable interest is credited to a savings account opened at the same post office or to an ECS account of the account holder.
Rules of premature withdrawal
The account holder will be allowed to withdraw the balance and close the account at any time after one year from the opening of the account by submitting an application form and passbook to the relevant post office. An amount equal to 2% of the deposit will be withdrawn if the account is closed after the account holder before 3 years from the date of opening the account. If the account is closed after 3 years but before 5 years from the date of opening, a penalty of 1% of the principal amount will be deducted and the remaining balance will be credited to the account holder.
Account maturity rules
The relevant post office will return the deposit made when opening the account, along with any interest earned, after five years have passed since the account was opened. The account can be terminated permanently after 5 years by submitting a mandatory application form with a passbook to the relevant post office, and the amount at maturity can be withdrawn respectively by the account holder.
If the account holder dies before the due date, the account may be closed by the responsible agent / legal heirs and the proceeds of the due date may be claimed by them. The account user should keep in mind that the deposit amount, plus interest, can be withdrawn up to the month preceding the month in which the repayment is made.