Want To Keep Your Money In Post Office? Check Out Latest Interest Rates
Did you know you can open a savings or fixed/recurring deposit account at a post office? India Post provides a range of banking and remittance services, including the nine types of government-run small savings schemes. These nine schemes include the post office savings account, which is a savings account that can be opened with a minimum deposit of Rs 500. The government keeps revising the interest rates applicable to these small savings schemes from time to time. For the current quarter, which ends on December 31, these savings schemes provide interest rates to the tune of 4-7.6 per cent.
Here are the current interest rates applicable to small savings schemes:
| Instrument | Rate Of Interest (Effective From April 1, 2020 to December 31, 2020 | Compounding Frequency |
|---|---|---|
| Post Office Savings Account | 4% | Annually |
| 1-Year Time Deposit | 5.5% (annual interest of Rs 561 on deposit of Rs 10,000) | Quarterly |
| 2-Year Time Deposit | 5.5% (annual interest of Rs 561 on deposit of Rs 10,000) | Quarterly |
| 3-Year Time Deposit | 5.5% (annual interest Rs 561 on deposit of Rs 10,000) | Quarterly |
| 5-Year Time Deposit | 6.7% (annual interest of Rs 687 on deposit of Rs 10,000) | Quarterly |
| 5 Year Recurring Deposit Scheme | 5.8% | Quarterly |
| Senior Citizen Savings Scheme | 7.4% (quarterly interest of Rs 185 on deposit of Rs 10,000) | Quarterly and Paid |
| Monthly Income Account | 6.6% (monthly interest of Rs 55 on deposit of Rs 10,000) | Monthly and paid |
| National Savings Certificate (VIII Issue) |
6.8% (maturity value of Rs 1,389 for deposit of Rs 1,000) Accrued interest for I-T purpose for Rs 1,000 First Year = Rs 68.00 Second Year = Rs 72.62 Third Year = Rs 77.56 Fourth Year = Rs 82.84 Fifth Year = Rs 88.47 |
Annually |
| Public Provident Fund Scheme | 7.10% | Annually |
| Kisan Vikas Patra | 6.9% (matures in 124 months) | Annually |
| Sukanya Samriddhi Account Scheme | 7.60% | Annually |
| (Source: indiapost.gov.in) | ||
Of these schemes, the time deposit or term deposit scheme comes in four maturity options, ranging from one to five years.
