Post office is a trusted place for depositing and transacting money. A lot of saving schemes are available here.Post office monthly income scheme is an investment scheme of the post office. You can invest a certain amount and earn a fixed amount every month. Monthly income schemes provide the investor guaranteed returns at 6.60% interest rate.And you will get it as a fixed monthly income.
It is a very good plan and it keeps capital intact,gives better returns, and provides a fixed monthly income. You can transfer this account from one post office to another.It can be done free of cost also. You should make a separate account. One person can open a lot of accounts. You can release the matured amount and reinvest it. The investor can appoint a nominee.There is no tax reduction to get your capital amount. The interest earned is taxable.
The maturity term is 5 years.youcan withdraw the amount after5 years. If you withdraw the deposit within 1 year,you get nothing. But if you withdraw the deposit within 1 to 3 years,you will get your deposit after a 2 % reduction. If you withdraw the deposit after 3 years,you will get a deposit after 1% reduction. It requires only minimum documentation. It is guaranteed.
- It is mostly apt for senior citizens,retired people
- The investor should be resident in India.
- NRI can’t make an investment in this scheme.
- The entry age is 10 years.
- Identity proof (passport,PAN card,ration card,voter ID)
- Address proof
You can invest lower capital of investment for a single account is Rs 1000 and upper capital of investment for single account is Rs 4,50,000.In a joint account, the lower capital is Rs 1000 and upper capital is Rs 9,00000.You will get annual interest rate 6.6%. If you invest Rs 4,50,000 for 5 years,you will get Rs 2,475 every month.And after the end of investment tenure, you will get a deposit back also.
You can withdraw this amount directly from the post office or credit to a savings account. You can combine this account with recurring deposits.your only is safe .The investor can nominate a beneficiary .you can collect post office monthly income scheme application form from post office .you can submit filled form with a photocopy of your ID,residential proof and photo.you can make initial deposit via cash or cheque.Its interest rate increased yearly. You can invest Rs 9 lakhs in a joint account, and you will get Rs 4950/ month return.