A monthly income scheme is a financial instrument where an investor gives a certain sum of money to a bank or a financial institution and the entity pays interest for the duration of the deposit. The rate of interest paid varies depending on the amount and tenure. Investors, especially conservative investors, prefer to open a monthly income scheme, as it is a safe investment option and it can be opened easily and quickly. The account can be opened individually or jointly.

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Benefits of Monthly Income Scheme

The reasons why monthly income scheme deposits are an ideal form of investment are as follows:

1. Guaranteed returns: Unlike an investment in the stock market or commodity market, fixed deposits are not a risky investment as they do not depend on fluctuating market rates. Investors can rest assured that his investments are safe and he will be getting back a guaranteed monthly interest amount without disturbing his principal amount to carry his daily needs.
2. Easily withdrawable: The amount that is invested in the monthly income scheme can be withdrawn at any time for a small penalty. The investor may have a financial emergency to meet financial needs during the marriage, sickness, or when his business is at the loss. The penalty is less than that of selling stocks or real estate as the asset cannot be sold easily because of its high value and if you are in a distressed situation, you will sell it for a much lower rate. Whereas, fixed deposits can be withdrawn at any time and all you lose is a certain interest income.
3. Flexible in nature: Monthly income scheme deposits can be taken for a tenure of 1 year or 5 years based on your needs and for whatever amount that you can invest monthly income scheme can be invested for the tenure of your choice. If you have planned for a big event in 5 years, then you can have a fixed deposit kept for 5 years to meet your financial requirement in 5 years. You can have various fixed deposit accounts to save for different goals.
4. Higher interest rates
5. Doorstep service

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Tenure	Normal Age Group (18 to 59)	Senior Citizen (60 or Above)
12 Months	12.24 % p.a.	12.24 % p.a. + Bonus
24 Months	12.24 % p.a.	12.24 % p.a. + Bonus
36 Months	12.24 % p.a.	12.24 % p.a. + Bonus
48 Months	12.24 % p.a.	12.24 % p.a. + Bonus
60 Months	12.24 % p.a.	12.24 % p.a. + Bonus

Terms & Conditions:

1. A Monthly Income Scheme account can be opened with a minimum of Rs. 5,000 /- and further in multiples of Rs. 1000.
2. Any individual can Deposit in a scheme.
3. In this scheme, interest will be deposited to the saving account or he can get cheques at monthly/quarterly intervals.
4. Nomination facility is available at the time of account opening.
5. TDS Deduction will be as per the Income Tax Act.
6. Minor after attaining majority has to apply for conversion of the account in his name.
7. No premature allow within 90 days of fixed deposit, and no interest will be payable if withdraw within 6 months.
8. Special interest rates will be applicable for people over 60 years of age, women, ex-servicemen, state and central government employees.
9. The loan facility is available against deposits.

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Mode of Payment:

All payments shall be made either in cash or by cheque/ draft against the receipt countersigned by its authorized signatory payments by any mode or media other than mentioned above shall be at the member account holder’s own risk. The cheque/draft shall be credited in the name of the member Account Holder subject to clearance by the bank. Outstation cheques shall not be accepted.

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Issue of Bond:

An MIS BOND will be issued to every member of the account holder. If any discrepancy or difference in the amount is found between the entries made in the BOND and receipts duly countersigned by the authorized signatory of the branch office bearing seal. Payment shall be made on the basis of receipts only.

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Choose your Monthly Income Scheme as per your requirements and avail the option of applying for a savings account in our Starinvest India Bank Nidhi Limited.