The government has made no changes to the interest rates on small savings schemes for the October-December quarter, the third quarter of financial year 2026-27. This means you will continue to receive the same interest as before. If you are planning to invest somewhere these days, you should also learn about the National Savings Monthly Income Account. The scheme currently offers annual interest of 7.4%. Through this scheme, you can arrange a monthly income of ₹9,250 for yourself. The investment period under the scheme is 5 years. Here is everything you need to know about the scheme: What is the Post Office Monthly Income Scheme? The Post Office Monthly Income Account is a small savings scheme of the Government of India. It is meant for people who want a fixed monthly income while keeping their money safe. The scheme is particularly beneficial for retirees, senior citizens and risk-averse investors. It can be described as a type of term deposit. Minimum ₹1,000 and Maximum ₹15 Lakh Can Be Invested Minimum ₹1,000 Under this scheme, an account can be opened with a minimum deposit of ₹1,000. Single Account If you have a single account, you can deposit a maximum of ₹9 lakh. Joint Account If you have a joint account, a maximum of ₹15 lakh can be deposited Receive ₹9,250 Every Month Under this scheme, the annual interest is divided into 12 monthly instalments, and that amount is paid to you every month. If you do not withdraw the money, it will remain in the Post Office Savings Account. No additional interest will be earned on this interest. Payments will be made only on the principal amount. Suppose you invest ₹9 lakh in this scheme. At an annual interest rate of 7.4%, you will receive annual interest of ₹66,600. If you invest ₹15 lakh in a joint account, you will receive annual interest of ₹1,11,000. Dividing this equally over 12 months will give you ₹9,250 every month. Note: This calculation is an estimate. The government reviews the interest rates on small savings schemes every three months. The deposited money will be returned after five years Its maturity period is five years. Once the scheme matures, the entire deposited principal will be returned. If you wish, you can reinvest it in the same scheme and continue receiving a monthly income. Penalty Will Be Charged for Withdrawing Money Before Maturity Before Maturity If you need to withdraw money before maturity, this facility is available after the account completes 1 year. Account Held for 1 to 3 Years For an account that is 1 to 3 years old, 2% will be deducted from the deposited amount, and the remaining amount will be returned to you. Account Held for More Than 3 Years For an account that is more than 3 years old, 1% will be deducted, and the remaining amount will be returned. Who can open an account? Any Indian citizen can open this account. A joint account can also be opened in the name of a minor or in the names of three adults. An account can also be opened in the name of a minor aged over 10, under the supervision of the parents. Aadhaar-PAN mandatory for opening an account The central government has made PAN and Aadhaar cards mandatory for investing in post office savings schemes, including PPF, Sukanya Samriddhi and the National Savings Monthly Income Account. An Aadhaar number or Aadhaar enrolment slip is required to open an account. How can you open an account under this? Post navigation Trump sons’ company to set up drone unit in Pakistan:3 sites selected; India has 4 factories ready, 3 under construction, 2 proposed
