What are a Post Office Monthly Income Scheme and the benefits of it

The Post Office Monthly Income Scheme can be provided by the Post Office which is regulated by the Union government of India. In this scheme, you can invest some amount of money and you can earn a fixed interest which you will earn monthly. This scheme will be helpful for you to have a guaranteed income every month to meet your small needs. It can be used as an additional income to your monthly wage. Senior citizens usually invest in the Senior Citizen Savings Scheme. As both of them have the same lock-in period but the SCSS provides a better interest.

Interest rate and deposit rules- The interest rate of the Post Office Monthly Income Scheme is now at 6.6% PA, payable monthly. The interest will be taxable in the hand of the depositor. A minimum of Rs 1000 you can invest in the scheme while the upper limit is Rs 4.5 lakhs. In the case of a joint account, the upper limit will be Rs 9 lakh. You can draw the interest through auto credit into a savings account standing at the same post office.