It is a scheme in which you invest a certain amount and earn a fixed interest every month. Post office post offers post office monthly income scheme among a host of banking products and services. It is highly reliable. It generate steady income. It is a government backed scheme. Withdraw the amount either any post office.
Investment
- Upto 4.5 lakh individually.
- Upto 9 lakh jointly.
Investment period
5 years
Lock in period
5 years.
If it is withdrawn after one year and before third year 2 % penalty and if it is withdrawn after 3rd year and before five year 1 % penalty
Benefits
- It is safe until maturity.
- you can withdraw the invested amount when the scheme matures.
- It is not a subject to market risks.
- You can start with the initial investment Rs 1500.
- You earn income in the form of interest every month.
- The returns are not inflation beating.
- It is higher compared to other fixed deposits.
- Income is subject to taxation.
- It has no TDS.
- Receive pay out one month from making first investment , not the beginning of every month.
- Open more than one account.
- Open a joint account with the two or more people.
- All account holders equally.
- Investor can move the funds to RD.
- Investment can’t exceed 3 lakhs for a minor.
- Investor can nominate a beneficiary.
- Collect the monthly interest directly from post office.
Eligibility
- Only resident Indian can open this account.
- NRI’s can’t open this account.
- you can open it in your child’s name.
- 10 year about children, becomes 18.
Documents
- Copy of ID card.
- Residential proof
- 2 passport size photos.
How to open
- Open a post office savings account.
- Collect a post office monthly income scheme application form.
- Submit the filled form with the copy of ID, residential proof, 2 photos.
- Get the signature of Nominee.
- Make initial deposit via cash /check.