Post Office Monthly Income Scheme is open to any citizen, including children. This is a government approved deposit scheme that allows you to invest as single or joint account holders.
Post Office Monthly Saving Scheme is both secure and lucrative scheme offered by the government. You can start investing in this scheme with just Rs 1000. It also offers attractive returns with no risks.
The post office scheme is open to adults as well as minors. People over the age of 18 can invest by opening an account in their own name either jointly or independently. Minors over the age of 10 can also participate in this scheme. Parents or guardians can open the accounts in the name of their children.
Investment amounts
You can start with a minimum investment of Rs 1000 in this monthly scheme offered by the post office. While investments can be made in multiples of Rs 1000, there is also an upper limit. For single account holders, the maximum investment allowed is Rs 9 lakh, whereas for joint account holders, the limit is Rs 15 lakh.
Interest rate
Post Office Monthly Income Scheme provides an annual interest rate of 7.4 percent. The essential requirement is that you must have a savings account in the post office. Additionally, the person applying for the scheme, must possess both Aadhar card and PAN card.The interest rate remains consistent throughout the tenure of the scheme until maturity. Interest is applied from the date of account opening until the date of withdrawal.
Maturity period
The maturity period for the Post Office Monthly Income Scheme is 5 years. In the event of the account holder’s demise before the maturity date, the account is closed, and the amount is refunded to the nominee. You cannot withdraw the money in the first year of investment. If money is withdrawn between one to three years, a penalty of 2 percent is deducted from the deposited amount.
Also read: How to invest in SIP as a beginner?
Read Exclusive COVID-19 Coronavirus News updates, at MyNation.