Read about Post office Monthly Income Account /
Scheme in India
Post Office Monthly Income Account
Post Office Monthly Income Account is meant for those investors who want to invest a lump sum and earn interest on monthly basis for their livelihood. The scheme is, therefore, a boon for retired or handicapped persons. They can just deposit an account and rest assured. They would get an amount every month and they can live on it. A good number of people go for this scheme on reaching retirement age. They just put their saving in a post office under this head and then they can just enjoy their life with family and friends while the post office, thanks to their deposited money, would take care of their monthly income.
How to Invest
One can invest in any head post office / sub-post office by cash, demand draft, or local cheques. You have to fill up the prescribed form and submit it with the amount. It would entitle you to withdraw an amount every month.
Who Can Invest
- An adult
- 2 / 3 adults jointly
- A minor of minimum ten years
- A guardian on behalf of a minor / a person of unstable mind
Maturity and Rate of Interest
- It is a six years account. 8% per annum payable monthly.
- Premature encashment facility is available after one year.
- There is facility of premature closure of account after 1 year to 3 years @ 2.00% discount.
- There is deduction of 1% if account is closed prematurely at any time after three years.
- Facility of reinvestment on maturity of an account.
- Maturity proceeds not drawn are eligible to earn savings account interest rate for a maximum period of two years.
- Minors’ investment is not clubbed with the guardian.
- Account is transferable to any post office in India, free of cost.
- Nomination facility is available.
- Monthly interest can be credited to the savings bank account in the same post office.
- 5% maturity bonus is also given.
Amount of Investment
Minimum invested amount has to be Rs 1500. Maximum amount is Rs. 4.50 lacs for single account and Rs Rs. 9.00 lacs for joint account. Minors have a separate limit of investment of Rs. 3 lakhs and the same is not clubbed with the limit of guardian.
Tax Benefits
- Deposits are not eligible for rebate under section 80 C.
- Deposits are exempt from Wealth Tax.
- No TDS
