Table of contents
Earlier National Saving Monthly Income Scheme was known as Post Office Monthly Income Accounts. Now, the new name with some changes for A.Y. 2018-19 is “National Saving Monthly Income Scheme”. The National Saving Monthly Income Deposit scheme looks forward to generating monthly savings for people who are ready to invest in a 5-year term scheme. The total investment limit of an individual is INR 4, 50, 000 and for a joint account, the limit is INR 9, 00, 000. There can only be one deposit in an account in multiple of Rs. 100 1
Who Can Open National Saving Monthly Income Scheme?
The National Saving Monthly Income Account can be opened by the following persons.
(i) a single adult
(ii) Joint Account (up to 3 adults) (Joint A or Joint B))
(iii) a guardian on behalf of a minor/ person of unsound mind
(iv) a minor above 10 years in his own name.
You can open more than one account in the National Saving Monthly Income scheme provided that the total amount deposited does not exceed (Rs.4,50,000) in a single account and (Rs.9,00,000) in a joint account. There can only be one deposit in any account in multiple of Rs. 100.
For the purpose of the maximum ceiling, the depositor’s share in a joint account shall be taken as one-half (where there are two joint-holders) or as one-third (when there are three joint holders).
Where any amount is deposited in excess of the specified limit, the subscriber shall be requested to withdraw the same. The such excess deposit shall carry interest at the Post Office Saving Bank rate from the date of deposit till the date of withdrawal.
Where to Apply?
You can open National Saving Monthly Income Account at any authorised post office or all public sector banks and ICICI Bank, Axis Bank and HDFC bank authorised for this purpose.
Aadhar Number
You must provide your Aadhar number or proof of enrolment for Aadhaar at the time of application of National Saving Monthly Income. If you are already an account holder even then you must furnish your Aadhaar Number. [Note] Notification No. GSR 1243 (E) dt. 29-09-2017 r/w Lr. F. No. 01/03/2015-NS, Dt.1-1-2018 [/Note]
Nomination
The facility of nomination is available to open National Saving Monthly Scheme. A person who wishes to invest in this scheme has the option to place the name of a nominee at the time of availing of the scheme or during any time within the operation of the account.
Maturity
The deposit in National Saving Monthly Scheme will mature after 5 years. [Note] Notification NO.1/11/2011-NS-II Dt. 25-11-2011 w.e.f. deposits made on or after 1-12-2011[/note]. But the maturity period is 6 years for deposits made up to 30-11-2011.
Nevertheless, if the depositor wants to liquidate his investment at any time within the period of 5 years, he can do the same by way of getting his deposit discounted. The process includes a nominal deduction charge which the depositor will be charged. Once the deposit gets discounted, the person can withdraw his deposits from this scheme.
Withdrawals
Permitted after one year, at 2% 2 discount. Withdrawals after 3 years are permitted at a discount of 1%. 3
Interest Rate of National Saving Monthly Income
Interest is paid every month in cash or cheque or deposited in the Post Office Saving Bank Account, at the option of the depositor. Interest shall be rounded off to the nearest multiple of Rs.1.
| Interest Rate (Annually) | Deposit Period |
| 6.6% | On deposits made on or after 1-4-2020 |
| 7.6% | On deposits made from 1-7-2019 to 31-03-2020 |
| 7.7 | 01-10-2018 to 30-06-2019 |
| 7.3 | 01-01-2018 to 30-09-2018 |
| 7.5 | 01-07-2017 to 31-12-2017 |
| 7.6 | 01-04-2017 to 30-06-2017 |
In case of an account in a post office/bank working on the CBS platform, monthly interest shall be credited in the savings account of the depositor in any such post office or any bank, if so authorised by the depositor.
Post Maturity Period
Where a deposit on maturity (including bonus) has become due but not paid, it shall carry interest from the date of maturity up to the date of repayment at the prevailing POSB A/C rate.
Bonus on Closure
In respect of deposits made on or after 8-12-2007 but before 1-12-2011, a bonus of @5% shall be payable on maturity on the production of the passbook accompanied by a written application. No bonus shall be paid on deposits made on or after 1-12-2011.
Tax Benefits of National Saving Monthly Income
No TDS is required on interest or the amount is withdrawn.
More Information Official Website and Rules
- Reduced from Rs. 1500 vide Notification No. GSR 1239 (E) Dt. 03-10-2017
- vide notification no.GSR 59(E), 10-02-2006
- vide notification no.GSR 59(E), 10-02-2006