Post Office Scheme - Monthly Income Scheme


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  • Interest rate of 8% per annum payable monthly.
  • Maturity period is 6 years.
  • Minimum investment amount is Rs.1000/- or in multiple thereof.
  • Investment Maximum -  Rs. 3 lacs in single account and in a joint account Rs. 6 lacs
  • Account can be opened by an individual, two/three adults jointly and a minor through a guardian.
  • Non-Resident Indian / HUF cannot open the Account. 
  • Minor has a separate limit of investment of Rs. 3 lacs and the same is not clubbed with the limit of guardian.
  • A separate account is opened for each deposit.
  • You can open a account in the same branch of the Post office and your monthly interest will be transferred to that account automatically.
  • You can do a premature closure of account after one year at the rate of 3.5% discount.
  • No deduction of 3.5% if account is closed on completion of three years.
  • There is no compounding of interest. 
  • If you dont withdraw your money from the savings account you can get the savings account interest rate.
  • Account is transferable from one post office to any Post office in India free of cost.
  • Nomination facility available.
  • No income tax rebate under section 80C
  • Interest income is taxable, but no Tax is not deducted at Source
  • Only scheme in Post office where monthly interest is payable.
  • Most suitable scheme for senior citizens and for those who need regular monthly income.
  • Deposits are exempt from Wealth Tax
  • Illustration of returns
    Deposit RsMonthly Interest Amount returned on maturity
    5,000335,500
    10,0006611,000
    50,00033355,000
    1,00,0006671,10,000
    2,00,0001,3332,20,000
    3,00,0002,0003,30,000
    6,00,0004,0006,60,000

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