Post Office Monthly Income Account
Post office monthly income account is helpful for investors who want to invest large amount and earn monthly interest for their living. This scheme is excellent for retired as well as handicapped people. They can deposit an amount in their account and assured for rest of their lives. Every month they would get some amount on which they can live on. People who are reaching retirement go in for this scheme. Their savings is put in a post office under monthly income head and they can be happily spend their life with family and friends, and the money deposited would take care of their monthly income.
How to Invest
- You can invest in any of the post offices or the sub post office either by cash or demand draft and even local cheques are accepted.
- A form has to be filled and then submitted with the amount
- The form will entitle you to withdraw a given amount monthly.
Who Can Invest
- Jointly, 2/3 adults
- Single adult
- A minor, but should be of 10 years of age and above
- A guardian on minor’s behalf
Rate of Interest and Maturity
- This is a 6 years account with 8% per annum payable on monthly basis.
- You can avail the facility of premature encashment only after one year.
- There is reinvestment facility available on account maturity.
- Free of cost, account can be transferred to any post office in India.
- Maturity bonus of 5% is given.
- Investment of a minor is not combined with the guardian.
- 1% is deducted from the account if you close it prematurely at any time after 3 year
Tax Benefits
- Deposits are exempted from the Wealth Tax
- There is no TDS
- Deposits are not eligible under section 80C for rebate.
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Dear Sir,
If I will deposit 50,000 rs then what amount earn every month