Post Office Monthly Income Scheme
Post office monthly income scheme is probably the most invested scheme in India. A boon for the middle class people. Even banks have copied the concept. Now a days many banks are offering monthly income type of schemes. But whether to invest in the safest place or in a bank will be your choice.
Without wasting much let us dive into the details of the scheme. I will provide you the details in the form of an FAQ so that you can understand easily and at the same time most of your doubts will be cleared. But before that let us see some important features of the post office monthly income scheme.
Some Salient Features of Post Office Monthly Income Scheme Account
- A post office monthly income scheme can be opened in any post office across India.
- The monthly interest on the deposited amount will be paid to you at a fixed rate of interest for a fixed period of time. At present the period of maturity is 5 years.
- The amount you invest must be a multiple of 1500.
- An individual can deposit up to a maximum of Rs.4,50,000/- only. In case of joint accounts the total deposit in the account shall not exceed Rs.900,000/-.
- The account can also be opened in the name of minor, which is operated by the guardian.
- The account can be closed only after a minimum period of 1 year from the date of opening.
- Premature closure of account attracts penalty equal to 1) 2% of the principle when closed after 1 year from the date of opening but before 3 years from the date of opening, 2) 1% of the principle when closed after 3 years from the date of opening.
- Interest earned every month can be credited to your Savings Account in any post office in India. ECS facility can be availed subject to availability at the post office. Not all post offices have ECS facility.
So these are some important features of Post Office Monthly Income Scheme. Now let us see some more details about the scheme.
How to Open A Post Office Monthly Income Scheme Account
- To open a post office Monthly Income Scheme account you have to fill out the prescribed application form and submit it in any post office.
- Along with the application form you also have to submit a copy of your Identity proof and address proof.
- Self attestation ( put your signature on the copies) is necessary for all the documents you are producing for opening of savings account.
- The mode of deposit can either be cash or you can give any bank cheque. If you already have a savings account in any post office you can give a cheque from that account also.
Who can open Post Office Monthly Income Scheme Account?
- Any Indian citizen can open a post office Monthly Income Scheme account. Provided they are not currently residing in any country other than India.
- A saving account can be opened all individuals above 18 years which can be operated by themselves.
- For all the individuals who are below 18 years, the account will be managed by guardians( mother /father or legal guardian)
Who can operate Post office Monthly Income Scheme account?
- Post office Monthly Income Scheme account can be operated by 1. Self if the account is a single account, 2. Up to 3 Account holders if the account is either a Joint A or Joint B account.
- Guardian ( Mother/Father or legal guardian) in case of an account opened in the name of a minor.
Whether Nomination Facility is available?
- Yes nomination facility is available. You can give a nomination at the time of opening of account. You can also change nomination at any time.
Whether the account can be closed prematurely?
- Yes, but the account can be closed only after a minimum period of 1 year from the date of opening.
- Premature closure of account attracts penalty equal to 1) 2% of the principle when closed after 1 year from the date of opening but before 3 years from the date of opening, 2) 1% of the principle when closed after 3 years from the date of opening.
So, these are some most commonly asked doubts about the post office monthly income scheme. If you still have any queries feel free to comment below and we will be happy to help.
Now let us see with an example how much interest can you get every month by investing in post office monthly income scheme.
Let us say Mr. Murli Mohan wants to invest Rs.1,50,000/- in the post office monthly income scheme. The present rate of interest is 6.6%. So the monthly a sum of Rs.825/- will be paid to Mr. Murli Mohan every month. Isn't it great.
If you have certain amount with you and you need some extra income for monthly expenses, monthly income scheme is the best option for investment. With the trust of India Post your money is absolutely safe.
Think twice and make the right choice by investing in post office monthly income scheme.
Cheers.