The Union Ministry of Finance in 2019 announced a National Savings Scheme (Monthly Income Account). In this scheme, an amount of ₹9 lakhs maximum can be deposited in a joint account. The interest from this deposit will enable a monthly income of ₹5700 for five years. Or in five years the depositor can earn ₹5700 X 60 = 3,42,000 only as interest against a deposition of ₹9 lakhs in the joint monthly income scheme account. And the maximum amount that can be deposited in a single monthly income scheme is ₹4.5 lakhs. With that deposit, the depositor can earn a monthly income of ₹2850 for five years. Or in five years the depositor will receive an amount of ₹2850 X 60 = ₹1,71,000.
G.S.R. 917 (E): In exercise of the power mentioned in section 3A of the “Government Savings Promotion Act, 1873”, the Central Government hereby launches the following scheme namely National Savings Scheme (Monthly Income Account), 2019.
These Are Few Key Details Of The National Savings Scheme (Monthly Income Account), 2019:
- To open an account any single adult will have to fill an application in Form 1. The maximum number of holders can be a maximum of three.
- Anyone can open and operate one or even more than one account as a single account or joint account under this scheme.
- To open the account the minimum amount of deposit has to be 1000 or any amount in the multiple of 1000.
- The maximum limit of deposit for a single amount is 4.5 lakhs and that too for a joint account is 9 lakhs. This means all deposits taken together shall not exceed 4.5 lakhs for a single account and 9 lakhs for a joint account.
- Any deposit under this scheme will bear an interest of 7.6 per cent per annum. And the interest is payable to the account holder on completion of a month from the time of deposit.
- The depositor can close the account and withdraw the amount any time after they have completed a year from the date of deposition.
Features of National Savings (Monthly Income) Scheme
- The account under National Savings Scheme (Monthly Income) provides a fixed rate of interest to its depositors despite that prevailing market scenario.
- The current interest rate on these accounts is set to be 7.6 per cent.
- The lock in tenure of these accounts is only 5 years.
- One can invest as low as ₹1000 in a deposit.
- There can be premature closure but there will also be a penalty for that.
As mentioned earlier the interest rate of the account held under the National Savings Monthly Income Scheme is 7.6 per cent per annum. Depending on severe economic factors it can go under revision as stated by the central government of India. But it can be assured that these types of accounts provide a much higher rate of interest than that of other savings accounts.
After investing ₹9 lakhs in a joint account at the time of opening will provide an interest of ₹5700 and if invested ₹4.5 lakhs during the time of opening the account then the depositor can get an interest of ₹2850 every month.
Know About National Savings Monthly Income Scheme In Gist
Name Of The Scheme
National Savings Monthly Income Scheme
18+ and for minors there has to be an adult nominee.
Type Of Account
Single account and Joint Account
As low as ₹1000
Single Account: ₹4.5 lakhs and Joint Account: ₹9 lakhs
7.6 per cent