If you want to earn some income every month along with investment, then you can invest money in the Post Office Monthly Income Scheme. This scheme generates income every month. If you want, you can withdraw the amount every month or you can also withdraw it together. Since this is a saving scheme of the Government of India, it is also a completely safe investment. Under this scheme, both account opening and investment are very easy. You can apply to open an account by visiting your nearest post office.
Who can invest
Post Office Monthly Income Scheme account can be opened by a single adult. Not only this, three people can also open a joint account and invest money. Also, if someone is a minor above 10 years of age, he can also open an MIS account in his name. If there is a minor/person of unsound mind then a guardian can open this post office MIS account on his/her behalf.
You can start with at least this amount
Investment in Post Office Monthly Income Scheme can be started with a minimum of Rs 1000. You can invest in multiples of Rs 1000. However, according to India Post, there is a fixed limit for investment in the scheme. A single account holder can invest a maximum of Rs 9 lakh. If there is a joint account then the maximum limit for it is Rs 15 lakh. In a joint account, the share of all members is equal.
This is the monthly income per ₹10,000.
At present 7.4 percent annual interest is being given on the amount deposited in this scheme. According to India Post, this scheme will earn Rs 62 per ₹ 10,000 every month and it will also be paid. Interest is paid on completion of one month from the date of account opening. This continues till maturity. If the interest payable every month is not claimed by the account holder, no additional interest will be earned on such interest. If any additional amount is deposited by the depositor, it will be refunded and interest will be applicable only on Post Office Savings Account from the date of account opening till the date of withdrawal. According to the official website of India Post, interest can be withdrawn through auto credit in the same post office or savings account. Tax is applicable on the interest amount received.
Know the maturity period
Under the Post Office Monthly Income Scheme account, the account can be closed on completion of 5 years from the date of account opening by submitting the prescribed application form along with the passbook in the concerned post office. If the account holder dies before maturity, the account can be closed and the amount returned to the nominee/legal heirs. Interest is paid up to the previous month in which the refund is made. Yes, you cannot withdraw any deposit before the expiry of 1 year from the date of deposit. If the account is closed after one year and before three years from the date of opening, an amount equal to 2% of the principal amount will be deducted and the balance amount will be paid.
