A Business Encyclopedia

Post Office Monthly Income Scheme

Definition: The Post Office Monthly Income Scheme is a saving scheme backed by the government of India on which fixed interest is paid. This scheme is offered by the department of post and aims at providing regular monthly income to the depositors.

The post office monthly income scheme offers several features to help investors to earn regular monthly returns on the deposits. These are:

  1. The rate of interest is 8% per annum (w.e.f. 1 April 2016) payable monthly.
  2. The minimum amount of investment is 1500. The maximum limit of deposit is Rs. 4.5 Lac in the case of a single account and Rs. 9 Lac in a joint account.
  3. The account can be opened either individually or jointly by two or three adults. All the joint account holders have an equal share in the joint account.
  4. Also, the account can be opened in the name of a minor or a minor of the age of 10 years or above can open and operate the account.
  5. The tenure of a scheme is 5 years. A bonus of 5% on principal amount is payable on the maturity with respect to the accounts opened after 8/12/2007 and up to 30/11/2011. However, no bonus is given on deposits made on or after 1/12/2011.
  6. The interest amount can be drawn through auto credit in the saving account held at the same post office through PDCs or ECS. In case of a CBS (Core Banking Solution) post office the interest can be auto credit in any savings account held in any CBS post office.
  7. The facility of premature withdrawal is available, the balance amount can be withdrawn after 1 year, but before 3 years with a 2% deduction and after 3 years with a 1% deduction of deposits.
  8. The nomination facility is available at the time of the opening of the account and also after the opening of the account.

Note: The Single account can be converted into a joint account and vice versa. Also, a minor after attaining the maturity (at 18 years) must apply for the conversion of an account in his name.

Leave a Reply

Your email address will not be published. Required fields are marked *


Related pages

epf employee provident fundaverage collection formulaconcept of non verbal communicationsamuelson multiplier accelerator interaction modeldefine teleologicalwhat is disguised employmentdefine and explain entrepreneurshipwhat is the meaning of constraints in hindimeaning of forecastedsales planning process pptwho uses laissez faire leadershipwhat is debenture and its typesclassical conditioning by pavlovclassical theory of inflationgnp and nnpwhat is cyclical unemployment in economicswhat are the three major types of vertical marketing systemsexamples of fmcg productsdefine monopolistic competitionmultistage random sampledefine likertelasticity of demand examplesrecruitment dashboardbank deposit multiplierexample of law of diminishing marginal utilitysituational contingency leadershipmeaning staggeredethical theroiesbureaucracy simple definitionconvenience sampling meaningexamples of laissez-faire leadership styledefinition of an oligopolynpv break evenunique feature of oligopolyshort term debt funds meaningemployment provident fund actporters forcespolycentric businessdefine teleology ethicsmeaning of whistle blowinglong term loan advantages and disadvantagesmemorandum of association and its clausesethnocentric polycentric and geocentricmarketing skimming definitiontrait theories definitioninitial outlay formulafive elements of the promotional mixunitarist meaningunder monopolistic competitiondefinition of demand pull inflationnnp in economicsdialectic method definitionqueue discipline definitionliquidity means in hindigeographical segmentation definitiondefinition of markup pricingclassical management definitionwhat is management according to henri fayolwhat is retrenchingmemoranda meaningopinion polls definitioncharacteristic of a perfectly competitive marketlikert system analysisreceivables turnover definitionlocal cheque meaningdefinition of fourteen pointsclassical theory of organizational behaviourdefinition of monetary instrumentthe gordon growth modelflanking strategydefine environmental auditdiscounting techniques of capital budgetingmeaning of utilitarian ethicsbusiness ethic theoriesstratified sampling strategyprinciple of scalar chainthe donkey and the carrot