The Post Office Monthly Income Scheme is a good investment opportunity that benefits you with substantial returns. This is a government approved deposit scheme that allows you to invest as single or joint account holders. Single account holders can deposit up to Rs 9 lakh and joint account holders can deposit up to Rs 15 lakh, in the investment period of 5 years. After the maturity of the scheme, the beneficiaries can enjoy a good return on their investment.

Interest rate

The current interest rate under this scheme is 7.4 percent. For maximum benefits, you can choose to open a joint account with your partner with a deposit of Rs 15 lakh. With this investment, you will receive a guaranteed return of Rs 1,11,000 in one year and Rs 5,55,000 in five years. If you do the math, you will be earning a monthly income of Rs 9,250 with interest alone. 

Alternatively, you can choose to open a single account with a deposit of Rs 9 lakh. You will earn Rs 66,000 annually and Rs 3,33,000 over five years from interest. You will make a monthly interest income of Rs 5,550. 


Post Office Monthly Income Scheme is open to any citizen, including children. If the child is below the age of 10, then the parents or guardians can open the account in the name of child. The essential requirement is that you must have a savings account in the post office. Additionally, the person applying for the scheme, must possess both Aadhar card and PAN card. 

When can you withdraw the money?

You can withdraw money from the Post Office Monthly Income Scheme after one year of investment. However, you will have to pay the penalty amount for that. If money is withdrawn between one to three years, a penalty of 2 percent is deducted from the deposited amount. If you withdraw money between three to five years, then a penalty of 1 percent is deducted. Experts suggest that it is advisable to withdraw the amount only after 5 years for maximum interest benefits.