Post Office Monthly Income Scheme

Post Office Monthly Income Scheme

Who can open an account
Only resident Indians can open accounts under the scheme. Even more than one account can be opened provided total deposits in all the accounts do not exceed Rs 450,000 in a single account and Rs 900,000 in joint account. There can be only one deposit in the account, which should be a minimum of Rs 1,500 or multiple thereof.

Nomination
There is a facility of nomination

Maturity
The maturity period for deposits under the scheme is 6 years.

Interest
Deposits earn an interest of 8% and payment is made every month in cash or deposited in the post office savings account, at the option of depositors.

Tax benefit
Investments in Post Office Monthly Income Scheme are not eligible for any tax benefits.

Wealth Tax
The deposits are exempt from Wealth Tax.

Withdrawals
Permitted after one year, however 5% of the initial amount invested is deducted. Withdrawal after 3 years is permitted without any deduction. In case of death of a depositor before maturity, the account may be closed and the deposited amount is refunded to the nominee/heir along with interest upto the month preceding the month in which refund is made.

Transfer of Account
Account can be transferred from one post office to another.