Post Office Scheme : While the Post Office offers several investment schemes that offer strong returns without any risk, one such scheme is the Post Office Monthly Income Scheme. This scheme offers higher interest rates than the Public Provident Fund (PPF). Let’s explore the details of the scheme.
Know about the scheme
The Post Office Monthly Income Scheme is valid for a period of 5 years. The minimum investment for a single account holder is Rs 1,500 and the maximum is Rs 4,50,000. The minimum investment for a joint account is Rs 1,500 and the maximum is Rs 9,00,000. For minor accounts, the minimum investment is Rs 1,500 and the maximum is Rs 3,00,000.
What is the interest rate for which period?
Interest rate for 1 year tenure: 5.50%
Interest rate for 2 year tenure: 5.50%
Interest rate for 3 year tenure: 5.50%
Interest rate for 5 year tenure: 7.6%
This means that the interest rate for a 5-year term is 7.6%. This is much higher than the 7.1% rate offered by the PPF. However, the PPF scheme has a lock-in period of 15 years.
How to open an account?
First, you must have a Post Office Savings Account. If you don’t already have one, open one. Obtain an application form from your post office. Fill out the form and submit it to the post office along with self-attested copies of all required documents. You’ll need to bring the original documents with you for verification.
Also, provide the name, date of birth, and mobile number of the nominee (if any). Make an initial deposit of at least Rs 1,000 via cash or check. Documents required include a copy of a government-issued ID, such as a passport/voter ID card/driving license/Aadhaar card, etc. Additionally, a government-issued ID or recent utility bill and a passport-size photo are required.
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