Post office schemes interest rate 2023: Which small savings scheme offers highest interest rate

The government’s small savings scheme offer various deposit schemes catering to different individuals such as girl kid (Sukanya Samriddhi), women investor (Mahila Samman), senior citizens (SCSS), long term investors (PPF, KYC, NSC) and short term investors (Time deposits, RD). Small savings scheme interest rates are revised every quarter by the government and interest rates vary accordingly. For this quarter, the highest interest rate is offered on Senior Citizen Savings Scheme is 8.2% and Sukanya Samriddhi Yojaya pays 8%.

Also read: PPF, Sukanya Samriddhi, SCSS, NSC interest rates for December 2023 quarter announced; check here

Compounding frequency

Instruments	Rate of interest w.e.f 01.10.2023 to 31.12.2023	Compounding Frequency
Post Office Savings Account	4	Annually
1 Year Time Deposit	6.9 (Annual Interest ₹708 for ₹10,000/-)	Quarterly
2 Year Time Deposit	7.0 (Annual Interest ₹719 for ₹10,000/-)	Quarterly
3 Year Time Deposit	7.0 (Annual Interest ₹719 for ₹10,000/-)	Quarterly
5 Year Time Deposit	7.5 (Annual Interest ₹771 for ₹10,000/-)	Quarterly
5 Year Recurring Deposit Scheme	6.7	Quarterly
Senior Citizen Savings Scheme	8.2 (Quarterly Interest ₹205 for ₹10,000/-)	Quarterly and Paid
Monthly Income Account	7.4 (Monthly Interest ₹62 for ₹10,000/-)	Monthly and paid
National Savings Certificate (VIII Issue)	7.7 (Maturity Value ₹14,490 for ₹10,000/-)	Annually
Public Provident Fund Scheme	7.1	Annually
Kisan Vikas Patra	7.5 (will mature in 115 months)	Annually
Mahila Samman Savings Certificate	7.5 (Maturity Value ₹11,602 for ₹10,000/-)	Quarterly
Sukanya Samriddhi Account Scheme	8	Annually

Also read: Latest PPF interest rate: Was Public Provident Fund interest rate hiked for Oct-Dec quarter?

TDS on interest

The Post Office offers a wide range of long-term and short-term investment plans, although it should be noted that not all investment options are tax-free; for example, the interest paid on some Post Office schemes is taxable, and section 80C of the Income Tax Act, 1961 does not allow for a deduction.
Also read: On which post office schemes is TDS applicable, where tax is not deducted

Final amount
Though interest rate plays a vital role in any investment. Tax slab of individual person also matters. So, one should invest considering all the avenues such as tenure, interest compounding, tax slab, TDS deduction.