Invest in Post Office Monthly Income Scheme (MIS)

Interest rate of 8% per annum payable monthly. Maturity period is 6 years. Minimum investment amount is Rs.1000/- or in multiple thereof. Maximum amount is Rs. 3 lacs in single account and Rs. 6 lacs in a joint account. Account can be opened by an individual, two/three adults jointly and a minor through a guardian. A minor having attained 10 years of age can open an account in his/her own name directly. 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. Any number of accounts can be opened subject to the maximum prescribed limit. Facility of automatic credit of monthly interest to saving account if accounts are at the same post office. Facility of premature closure of account after one year @ 3.50% discount. No deduction of 3.5% if account is closed on completion of three years. Facility of reinvestment on maturity of an account. Interest not with-drawan does not carry any interest. Maturity proceeds not drawn are eligible to saving account interest rate for a maximum period of two years. Account is transferable from one post office to any Post office in India free of cost. Nomination facility available. Rebate under section 80 C not admissible. Interest income is taxable, but no TDS 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.              Safe & sure way to get a regular monthly income.      Specially suited for retired employees/ Senior Citizens or any one with high sum for investment       Rate of interest 8%.      Maturity Period - Six Years.      5% Bonus on Maturity.      Post maturity Interest at the rate applicable from time to time (at present 3.5%)       Auto credit facility to SB Account.    Deposit in Monthly Income Scheme and invest interest in Recurring  Deposit to get 10.5% (approx) interest.   Above scheme operates automatically, if you open a saving bank account and give a request for automatic transfer of Monthly Income Scheme interest to Recurring Deposit through Saving Bank account.