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Q.

Is interest in POMIS compounded

Tags: money, pomis, politics & government
Asked by krishna mohan, 08 Sep '10 06:53 am
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Answers (3)

1.

Sai Ram. MIS means Monthly Income Scheme and even if we don't draw it for a few months, it just stays in the passbook as interest. So, there is no question of compounding.
Answered by Venkateswaraswamy Swarna, 08 Sep '10 07:30 am

 
  
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2.

You can alternatively open an R.D A/C with the same post office and transfer the monthly interest to that A/C to get the benefit of compounding your interest. as it is no provision for compounding of interest. You will get a bonus of 5% on your investment at the end of the sixth year when your deposit matures.
Answered by spandana k, 08 Sep '10 09:58 am

 
  
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3.

No please, it is paid out every month, if u donot withdraw every month the interest is credited to your savings account and u get only 3.5 percent there. but there is no compunding in MIS
Answered by rajan, 08 Sep '10 06:56 am

 
  
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