Post office deposit schemes' interest rates
Here is the latest interest of the Small Savings Schemes. The government reviewed and fixed the interest rate of these schemes every quarter. Some of these schemes also offer tax benefits.
By ET Online | Updated:

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The post office offers various types of deposit schemes for those looking to invest. These instruments are also known as small savings schemes. The USP of these schemes is their sovereign guarantee, i.e., they are backed by the central government. Some of these schemes such as NSC, SCSS etc. also offer tax-saving benefits under section 80C of the Income-tax Act, 1961.
Interest rates on these small savings schemes are reviewed and fixed every quarter by the government. Here is a look these schemes in detail.
The account can be opened singly or jointly with your spouse. Deposits above Rs 1 lakh will be accepted via cheque only. The scheme qualifies for tax break under section 80C. Click here to read all about the Senior Citizen Savings Scheme.
Maturity amount is payable after completion of 21 years. The penalty will be levied if the minimum amount required is not deposited in a single financial year. Click here to know all about Sukanya Samriddhi Yojana.
Current interest rates on post office deposit schemes
#Section 80C benefit available only for 5-year Time Deposit
Source: Government of India circular dated December 30, 2020
Note that the PPF account cannot be attached by a person or entity in lieu of unpaid debt or liability. Even a court order or decree cannot make a person liable to pay off his debts using money from PPF accounts. Click here to know about lesser known facts about PPF.
Also Read: PPF loan and premature withdrawal rules
Also Read: NSC or Bank FD: Which is better tax-saving option?
Rebate is offered on deposits made six months or more in advance of the due date. Post maturity, the RD account can be extended for another five years.
Recently, the government launched internet banking facility for the customers, which can be accessed at https://ebanking.indiapost.gov.in.
Also Read: Three different accounts offered by India Post
Interest rates on these small savings schemes are reviewed and fixed every quarter by the government. Here is a look these schemes in detail.
- Senior Citizen Savings Scheme (SCSS)
The account can be opened singly or jointly with your spouse. Deposits above Rs 1 lakh will be accepted via cheque only. The scheme qualifies for tax break under section 80C. Click here to read all about the Senior Citizen Savings Scheme.
- Sukanya Samriddhi Yojana (SSY)
Maturity amount is payable after completion of 21 years. The penalty will be levied if the minimum amount required is not deposited in a single financial year. Click here to know all about Sukanya Samriddhi Yojana.
Current interest rates on post office deposit schemes
Instrument | Interest rate (%) from January 1, 2021 | Min amt (Rs) | Max amt (Rs) |
Senior Citizen Saving Scheme | 7.4 | 1000 | 15 lakh |
Sukanya Samriddhi Account | 7.6 | 250 | 1.50 lakh |
Public Provident Fund | 7.1 | 500 | 1.50 lakh per annum |
5 Yr NSC-VIII Issue | 6.8 | 1000 | No limit |
Time Deposit# | 5.50-6.70 | 1000 | No limit |
Post Office Monthly Income Scheme | 6.6 | 1000 | Single: 4.50 lakh |
Post Office Monthly Income Scheme | 6.6 | 1000 | Joint: 9 lakh |
Kisan Vikas Patra | 6.9 | 1000 | No limit |
Recurring Deposits | 5.8 | 100 | No limit |
Savings Account | 4 | 500 | No limit |
Source: Government of India circular dated December 30, 2020
- Public Provident Fund (PPF)
Note that the PPF account cannot be attached by a person or entity in lieu of unpaid debt or liability. Even a court order or decree cannot make a person liable to pay off his debts using money from PPF accounts. Click here to know about lesser known facts about PPF.
Also Read: PPF loan and premature withdrawal rules
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- 5-year NSC-VIII Issue
Also Read: NSC or Bank FD: Which is better tax-saving option?
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- Post office time deposit (POTD)
- Post Office Monthly Income Scheme (POMIS)
- Kisan Vikas Patra (KVP)
- Post office recurring deposits (RD)
Rebate is offered on deposits made six months or more in advance of the due date. Post maturity, the RD account can be extended for another five years.
- Post office savings account
Recently, the government launched internet banking facility for the customers, which can be accessed at https://ebanking.indiapost.gov.in.
Also Read: Three different accounts offered by India Post
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