A lot of investors have the question, where can I invest to get a regular income? Is there any scheme where I can get a monthly interest on my investment?
In this video we answer questions related to the Post Office Monthly Income Scheme.
1. What is the Post Office Monthly Scheme? – This is a 5-year maturity fixed income scheme that makes a monthly interest payout to the investor.
2. How can I open a Monthly Income Scheme account? – Any resident individual or minor under 10 years can open this account. It can be opened in any post office branch. Can be opened as a single account or joint by 3 holders.
3. What is the minimum investment? The minimum investment amount is Rs. 1000. For single accounts the maximum limit is Rs. 4.5 lakhs and for joint accounts Rs. 9 lakhs. For a minor’s account the maximum limit is Rs. 3 lakhs.
4. Is my investment in a post office scheme safe? This account is backed by the Government of India and hence it is considered as one of the safest investment options.
5. Can I withdraw my amount before maturity? Yes, but with penalties.
6. Is there any tax benefit in monthly income scheme? There is no deduction available u/s 80C. Interest income is taxable as per tax slab. 7. What is the interest rate on Post Office Monthly Income Scheme? For the quarter starting July 2020, the rate is 6.60% pa payable monthly.
8. Should I invest in the monthly income scheme? This account is suitable for risk-averse investors seeking regular income.