4. Post Office Monthly Income Accounts:

This account can be opened by a single adult or 2-3 adults jointly at any post offices. Period of maturity of an account is six years. The deposit limit is minimum of 1,000 to maximum of 3 lakhs for single account and 6 lakhs for joint account. The depositor’s shares in the balances of joint accounts will be half or one third of such balance according to the number of persons holding the account. The rate of interest provided for this scheme is 8 percent. In addition to this, bonus equal to ten percent of the deposited amount is payable at the time of repayment on maturity. The depositer is provided with a passbook with entries of the deposited amount and other particulars duly stamped by the post office. Income tax relief is available on the interest earned as per limits fixed vide section 80L of Income Tax, as amended from time to time.