The Union Ministry of Finance recently notified National Savings (Monthly Income Account) Scheme, 2019 vide GSR 917 (E) dated December 12, 2019. Under the scheme, maximum Rs 9 lakh can be deposited in a joint account. This deposit will ensure a monthly income of Rs 5700 for five years. Or, in five years, you can earn Rs 5700×60 = Rs 3,42,000 as interest on the deposit of Rs 9 lakh in the joint monthly income scheme account. The maximum deposit limit in a single monthly income scheme account is Rs 4.5 lakh. This deposit will provide you with a monthly income of Rs 2850. This total interest you will earn by depositing Rs 4.5 lakh in a single monthly income scheme account will be Rs 2850×60 = Rs 171,000.
Following are some key details of National Savings (Monthly Income Account) Scheme, 2019
– The account may be opened by making an application in Form-1 by a single adult; up to a maximum of three adults in joint names; a minor who has attained the age of 10 years; a guardian on behalf of a minor or a person of unsound mind.
– You may open and operate one or more than one account as a single account or a joint account under this Scheme subject to the ceiling of maximum deposit limit.
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– The account shall be opened with a minimum deposit of Rs 1000 or any sum in multiple of one thousand rupees and there shall be only one deposit in an account.
-A maximum of Rs 4.5 lakh can be deposited in a single account, account opened and Rs 9 lakh in a joint account. Deposits in all the accounts taken together for an individual shall not exceed Rs 4.5 lakh in a single account and Rs 9 lakh in a joint account.
– Interest rate: deposit made under this Scheme will bear interest at the rate of 7.6 per cent. per annum. The Interest will be payable to the account holder on completion of a month from the date of deposit. If the interest payable every month is not claimed by the account holder then such interest will not earn any additional interest.
– The account holder can be permitted to withdraw the deposit and close the account at any time after expiry of a period of one year from the date of opening of such account.
– The deposit made at the time of opening of the account and the interest accrued thereupon will be paid by the accounts office after completion of five years from the date of the opening the account to the account holder on an application in Form-3.
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Source: Financial Express