Monthly income scheme help the elderly people with monthly expenses | NRIs are not eligible for the Monthly income scheme
People who want to take the interest every month by investing at a time can join in the post office monthly income scheme (MIS). There is government guarantee to the deposit and there will be full security to the money invested. They should invest Rs.1,500 as the starting investment and they should not invest more than Rs.4,50,000 on one person. They can invest Rs.9,00,000 in the joint account. Anyone can invest in this scheme and they can open any number of accounts on a single person. The children of age 10 years can also invest on their name but the NRIs canâ€™t invest in this scheme. They will pay the money every month at the interest rate of 8%. If they deposit one lakh in the scheme, they will get Rs.667 as interest every month. The duration of the scheme is six years and they can get deposit of Rs.5000 as bonus after the completion of the period. If they donâ€™t take the interest every month, the interest wonâ€™t be increased and they will get 3.5% interest per year if they deposit in the savings account. Since the duration of the scheme is 6 years, they can withdraw from the scheme only after one year. They will get the amount after deduction of 2% of the money from the actual invested amount. If they withdraw the scheme after three years, they will pay the remaining amount after deducting 1% from the actual amount.
There is no need of PAN card for depositing in the MIS scheme. In MIS, they do not deduct the Tax at Source. But the tax on interest earned through MIS should be paid along with the other incomes. The monthly income scheme is the better option for the aged people which helps them in maintaining their monthly expenses. Parents who want to pay Rs.3000 every month to their daughter can join in this scheme. They can get Rs.3000 every month if they invest Rs.4,50,000. They can get Rs.2000 if they deposit the amount of Rs.3,00,000 on their grandson name. Everyone can save in this scheme according to their capacity.