Page 90 - DMGT515_PERSONAL_FINANCIAL_PLANNING

Unit 5: Investment Vehicles

Continuation after Maturity Notes
Permissible for a maximum period of five years.
3. Post Office Monthly Income Accounts
Who can open?

(i) A single adult or 2-3 adults jointly.
(ii) More than one account can be opened subject to maximum deposit limits.
Where can be opened?
At any post office.

Maturity
Period of maturity of an account is six years.
Deposits
Only one deposit shall be made in an account.

Deposit Limits
(i) Minimum: rupees one thousand.
(ii) Maximum: rupees three lakhs in case of single and rupees six lakhs in case of joint
account. Deposits in all accounts taken together shall not exceed ` three lakhs in
single account and ` six lakhs in joint account. The depositor’s shares in the balances
of joint accounts shall be taken as one half or one third of such balance according as
the account is held by 2 or 3 adults.
Interest

(i) Interest @ 8 per cent/ per annum, payable monthly in respect of the accounts opened on
or after the 1st March, 2003.
(ii) In addition, bonus equal to ten per cent of the deposited amount is payable at the time
repayment on maturity.
Pass Book
Depositor is provided with a pass book with entries of the deposited amount and other
particulars duly stamped by the post Office.

Premature Closure
(i) Premature closure facility is available after one year subject to condition closure of
account.
(ii) Account shall be closed after expiry of 6 years, bonus equal to ten per cent of deposits
shall be paid along with principle amount.
Income Tax Relief
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.
4. National Savings Certificate (VIII Issue)
Who can purchase?
(i) An adult in his own name or on behalf of a minor,
(ii) A minor,

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