India Post, the government-owned postal services, provides the facility of monthly income scheme with which the individual can invest a minimum of Rs 1,500 per month. The maximum investment limit for a single account holder is fixed at Rs 4.5 lakh,
while, the upper ceiling for investment for joint account holders goes up to Rs 9 lakh. For calculation of the share of an individual in the joint account, each joint holder has an equal share in each joint account, India Post said.
while, the upper ceiling for investment for joint account holders goes up to Rs 9 lakh. For calculation of the share of an individual in the joint account, each joint holder has an equal share in each joint account, India Post said.
All the individuals are allowed to open Post Office monthly income scheme account with the facility of transfer from one post office to another. Post Office monthly income scheme account can be opened by cash and cheque. In case the individual is opening the account with a cheque, the date of realisation of cheque in government account will be the date of opening of the account.
According to the prescribed guidelines by the government, the Post Office monthly income scheme offers an interest rate of 7.3 per cent per annum. The joint account can be opened by two or three adults with the all joint account holders having an equal share in each joint account. Further, a single account can be converted into a joint account and a joint account can be converted into a single account.
A person is allowed to open any number of accounts in any post office provided the maximum investment in all the accounts is limited to the upper ceiling according to the rules mentioned above. Post Office offers the nomination facility to all the account holders at the time of account opening and after the opening of the account.
Minors of 10 years and above age are also allowed to open Post Office monthly income account and after attaining majority, minors are required to apply for conversion of the account in their name. Post Office monthly income account has a tenure of 5 years with effect from December 1, 2011.
Account holders are eligible to withdraw money from Post Office monthly income scheme account between the period of one year three years after deducting 2 per cent of the deposit and after 3 years after deducting 1 per cent of the deposit.
