Rule 8 - Interest of deposit - Post Office (Monthly Income Account) Rules, 1987

Interest of deposit 8. (1) The deposit made under these rules shall bear interest at the rate of— ( a ) 12 per cent per annum in respect of deposits made on or after the 15th day of August, 1987 but before the 24th day of April, 1992; ( b ) 14 per cent per annum in respect of deposits made on or after the 24th day of April, 1992 but before the 2nd day of September, 1993; ( c ) 13 per cent per annum in respect of deposits made on or after the 2nd day of September, 1993 but before the 1st day of January, 1999; ( d ) 12 per cent per annum in respect of deposits made on or after the 1st day of January, 1999 but before the 15th day of January, 2000; ( e ) 11 per cent per annum in respect of deposits made on or after the 15th day of January, 2000 but before the 1st day of March, 2001; ( f ) 9.5 per cent per annum in respect of deposits made on or after the 1st day of March, 2001 1 but before the 1st day of March, 2002; ( g ) 9 per cent per annum in respect of deposits made on or after the 1st day of March, 2002 but before the 1st day of March, 2003 ; (h) 8 per cent per annum in respect of deposits made on or after the 1st day of March, 2003. (2) The interest shall be payable monthly to the depositor on completion of a month from the date of deposit. (3) If so authorised, interest payable monthly shall be deposited by the Post Office in the savings account of the depositor held at the Post Office where deposits held subject to the condition that by so depositing the interest, maximum limit on balances in savings account is not exceeded. (4) If the interest payable every month is not claimed by a depositor, such interest will not earn by additional interest. (5) Interest shall be rounded off to nearest multiple of rupee one and for this purpose any amount of 50 paise or more shall be treated as rupee one and any amount less than 50 paise shall be ignored. (6) A Post office shall, as soon as it comes to the notice that a deposit made under rule 4 by a subscriber exceeds the pre scribed ceilings specified therein, such Post Office shall re quest the subscriber to withdraw the excess deposit immediately. Explanation .—"Post Office" means and includes a Head or Sub-Post Office. (7) The excess amount referred to in sub-rule (6) shall carry an interest at the rate applicable from time to time to the Post Office Savings Account and shall be payable to such subscriber on such amount. (8) The interest referred to in sub-rule (7) shall be admissible from the date of deposit of the excess amount till the end of the month preceding the month in which the subscriber has been re quested to withdraw such excess amount in the account.