Department of Posts or India Post, which operates a network of more than 1.5 lakh post offices and over three lakh postmen across the country, offers nine types of government-sponsored savings schemes. These are - Post Office Savings Account, 5-Year Post Office Recurring Deposit Account (RD), Post Office Time Deposit Account (TD), Post Office Monthly Income Scheme Account (MIS), Senior Citizen Savings Scheme (SCSS), 15 year Public Provident Fund Account (PPF), National Savings Certificates (NSC), Kisan Vikas Patra (KVP), and Sukanya Samriddhi Accounts.
At present, the interest rates applicable to post office saving schemes are reviewed on a quarterly basis. For the current quarter, ending on September 30, 2019, investment in post office small savings schemes fetches returns to the tune of 4-8.6 per cent. In the current quarter, the government reduced interest rates of small savings schemes by 0.1 per cent. However, interest rate on savings account has been retained at 4 per cent annually. Here are the interest rates of all types of post office saving schemes:
| Post office small saving scheme | Rate of interest for quarter ending September 30, 2019 | Compounding frequency |
|---|---|---|
| Savings Deposit | 4.00% | Annually |
| 1-Year Time Deposit | 6.90% | Quarterly |
| 2-Year Time Deposit | 6.90% | Quarterly |
| 3-Year Time Deposit | 6.90% | Quarterly |
| 5-Year Time Deposit | 7.70% | Quarterly |
| 5-Year Recurring Deposit | 7.20% | Quarterly |
| 5-Year Senior Citizen Savings Scheme | 8.60% | Quarterly and paid |
| 5-Year Monthly Income Scheme | 7.60% | Monthly and paid |
| 5-Year National Savings Certificate | 7.90% | Annually |
| Public Provident Fund Scheme | 7.90% | Annually |
| Kisan Vikas Patra | 7.60% | Annually |
| Sukanya Samriddhi Account Scheme | 8.40% | Annually |
A post office account under any of the small savings schemes except recurring deposit can be opened with a minimum investment of Rs 20-1,500, according to India Post's official website - indiapost.gov.in. For opening a five-year recurring deposit account, a minimum investment of Rs 10 per month is required, according to the India Post's website.Given below are the minimum investment required in different types of post office saving accounts:
| Account name | Minimum amount required to open account |
|---|---|
| Savings account (Cheque account) | Rs 20 |
| Savings account (non Cheque account) | Rs 20 |
| Monthly Income Scheme (MIS) | Rs 1,500 |
| Fixed Deposit (FD) Account | Rs 200 |
| Public Provident Fund (PPF) | Rs 500 |
| Senior Citizen Savings Scheme (SCSS) | Rs 1,000 |
(As mentioned on India Post's official website)
Some of these post office saving schemes also qualify for income tax benefits.
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