"Great things never come from comfort zone"           "Wealthy people invest first and spend what’s left and broke people spend first and invest what’s left"           "Investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the future"           "The secret to getting ahead is getting started.................Start using your Savings to Earn Money"           "The best gift, and investment, you can give your child is your time"           "Investing in your child’s education is never a wasted effort"           "Making money and handling money are both different things"



Monthly Income Scheme

“The rich invest in time, the poor invest in money.”

Monthly Income Scheme is best for retired persons, earning a regular income from their investments is one of their top priorities. This scheme helps to meet out their monthly household expenses, even for those continuing to work part-time or occasionally. It is a fixed income scheme, the money you invested is not subject to market risks and is quite safe.


“Icing on this cake is that monthly interest income can be further invested in Recurring Deposits to give you double profit”
  • The investment in this scheme is available at any post offices in India.
  • The investment can be made in the individual name or in the joint name.
  • The investment in this scheme can be made by an Indian resident.
  • An NRI’s is not eligible to invest under this scheme.
  • The account can be transferred from one post office to another post office.
Minimum or Maximum amount can be deposited- (According to Budget 2023)
  • The investment can be start with a minimum amount of Rs. 1,500 & with a maximum of Rs. 9,00,000 4,50,000 in your individual name.
  • The limit has been enhanced to Rs 9,00,000 from Rs 4,50,000 for single account holders, or In case of joint holding, the limit has been increased to Rs 15,00,000 from Rs 9,00,000. Maximum investment limit is Rs. 4, 50,000/- in single account and Rs. 9, 00,000/- in joint account.
  • Multiples of Rs 1,500, subject to the above limit.
Opening of Account-
  • You can open more than one account in your name. But the total deposit amount cannot exceed Rs. 9,00,000 (single account holder) or Rs. 15,00,000 (Joint account holder) 4.5 lakhs in all of them together.
  • Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.
  • Account can be opened in the single name or in the joint name.
Mode of Payment-
  • The amount can be deposited through cheque, demand draft or online transfer.
Rate of Interest-
  • Now the interest rate has increased for the 1st quarter of 2023-24 is 7.40%. the interest rate has reduced to 6.60% per annum w.e.f. 01.04.2020, The Interest rate is revised from 3rd quarter @ 7.7% per annum (earlier in 1st or 2nd quarter of 2018 it was 7.3%).
  • Interest is received on monthly basis.
Documents required-
  • Residential proof of the applicant
  • Identity proof of the applicant
  • Photograph of the applicant
See the related post : How to save Income Tax
Partial withdrawal- 
  • Premature withdrawal can be made after one year or before 3 years at a discount of 2% of deposit amount and after 3 years at a discount of 1% of deposit amount.
  • Principal amount is payable on maturity i.e. after completion of 5 years. It can be further invested for next 5 years.
Keep in mind-
  • Investment under this scheme is not eligible for tax deduction limit.
  • Interest received thereon is fully taxable.
  • This is guaranteed investment schemes.


Leave a Reply

Name *
Comments *

© 2024 - EnSkyAR Financial Services