If you are searching for a non risky product for investing your money and to get the regular income then post office monthly income scheme is best for you. Risk element is very low in this scheme as it is guaranteed by the government.
In this scheme your money will get lock for six years and you will receive monthly interest on this money at fixed rate of interest. Current interest rate that the post office is providing is 8% p.a. and you will also get bonus of 5% on the principal amount at the end of tenure. Interest you will get is taxable.
You can get this scheme by simply filling a prescribed form and submitting it to the post office with cash, checks or demand draft. Post office will open an account and give you a certificate of this scheme. You will also get a passbook to record transactions against this scheme. You can receive interest by showing this passbook to the post office every month or by availing the facility of direct credit to your savings account. In this case you have to show your passbook once in six months to get the entries complete. You can also transfer your account to any other branch of post office.
To open this account the person must be older than 10 years of age and this facility is not available for NRI’s. The maximum amount you can invest is Rs 4.5 lakh in case of single owner and Rs 9 lakhs in case of joint account. You can also open multiple numbers of accounts but the total amount in these accounts must not increase maximum limit of RS 4.5 lakhs.
You can also pre- mature closure of the account but in this case post office will deduct some percent of your principal amount. In case of death of the depositor before maturity, post office will close the account and will refund the money to the nominee.
In this way this scheme is really beneficial for safe investment of money.
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