Post Office Savings Scheme: Interest Rates, Minimum Deposit Amount, Other Details Compared Here

India Post offers a number of saving schemes ranging from Post Office savings account to Kisan Vikas Patra (KVP) account, as mentioned on its official website- indiapost.gov.in. Post office pays an interest rate of up to 8.3 per cent on these saving schemes. India Post has a network of more than 1.55 lakh post offices across the country and offers a variety of banking and remittance services, other than mailing services. The post office savings scheme includes recurring deposit (RD), fixed deposit (FD), monthly income scheme (MIS), among others.

Post Office Savings account

Post office saving accounts can be opened by cash only. The post office pays an interest rate of 4 per cent per annum on deposits in its savings account. The minimum amount for opening of a savings account is Rs 20. For a non-cheque facility account, the minimum balance to be maintained is Rs 50. Cheque facility is available if an account is opened with Rs 500 and for this purpose minimum balance of Rs 500 in an account is to be maintained, according to the India Post website. Interest earned is tax free up to Rs 10,000 per year from financial year 2012-13.

5-Year Post Office Recurring Deposit account (RD)

Post Office Recurring Deposit account can be opened by cash as well as cheque. In case of cheque, the date of deposit shall be date of presentation of cheque, said India Post. Minimum amount for opening of post office recurring deposit account (RD) is Rs 10 per month or any amount in multiples of Rs 5. The post office pays an interest rate of 6.9 per cent per annum on its recurring deposit account, which is compounded on a quarterly basis. On maturity, a recurring deposit of Rs. 10 per month fetches a return of Rs. 717.43 over a maturity period of five years. 

Post Office Time Deposit (TD) or Fixed Deposit (FD) account

Post office time deposit (TD) or Fixed Deposit (FD) account can be opened by cash or cheque. In case of cheque, the date of realization of cheque in government account should be date of opening of account, said India Post. Interest is payable annually but is calculated quarterly. The interest rate ranges from 6.6 per cent to 7.4 per cent, according to India Post. The minimum amount that one requires to open a fixed deposit with the post office is Rs. 200.

Post Office Monthly Income Scheme Account (MIS)

Post office monthly income scheme account can be opened by cash or cheque. In case of cheque, the date of realization of cheque in government account should be date of opening of account. The post office offers an interest rate of 7.3 per cent per annum. The interest is payable on a monthly basis, said India Post. The minimum amount required to set up a monthly income account is Rs. 1,500. Maximum investment limit is Rs 4.5 lakh in single account and Rs 9 lakh in joint account, said India Post.

Kisan Vikas Patra account

The minimum amount required for opening of Kisan Vikas Patra (KVP) account is Rs 1,000 in multiples of Rs 1,000. There is no maximu limit, said India Post. The post office pays an interest rate of 7.3 per cent on deposits in KVP certificates. The interest is compounded on an annual basis. The amount deposited in the Kisan Vikas Patra doubles in a period of 118 months, according to India Post. KVP can be purchased from any departmental post office.