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Post Office Small Savings Schemes: Interest Rates, Minimum Investment And Other Key Details

The government provides interest at the rate of 4-8.7 per cent on investment in the nine small savings schemes, according to India Post.

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Post Office Small Savings Schemes: Interest Rates, Minimum Investment And Other Key Details

Post office small savings schemes: The government currently offers up to 8.7% interest on these schemes


Did you know you can choose from a variety of options for keeping your money in the post office? India Post, which operates a network of more than 1.5 lakh post offices across the country, offers nine options under its small savings scheme portfolio. From savings to fixed deposit and recurring deposit, the post office today offers several types of investment options to the retail customer. These schemes include the retirement planning-focussed Public Provident Fund (PPF), the tax-saving five-year fixed deposit and Senior Citizen Savings Scheme. For the current quarter, ending on March 31, the government provides interest at the rate of 4-8.7 per cent on investment or deposit held in these small savings schemes, according to India Post's website - indiapost.gov.in.

Here's a comparison of the interest rate and investment limits applicable to these small savings schemes (including Public Provident Fund):

Small savings schemeInterest rateMinimum amount required for opening accountMaximum investment allowed
Savings account4%Rs 20 
Five-year recurring deposit account7.30%Rs 10 per monthNo limit
One-year time deposit (fixed deposit) account7%Rs 200No limit
Two-year time deposit (fixed deposit) account7%Rs 200No limit
Three-year time deposit (fixed deposit) account7%Rs 200No limit
Five-year time deposit (fixed deposit) account7.80%Rs 200 
Monthly income scheme7.30%Rs 1,500Rs 4.5 lakh
Senior citizen savings scheme (SCSS)8.70%Rs 1,000Rs 15 lakh
15-year public provident fund8%Rs 500Rs 1.5 lakh per financial year
National savings certificate (NSC)8%Rs 100No limit
Kisan Vikas Patra (KVP)7.70%Rs 1,000No limit
Sukanya Samriddhi8.50%Rs 1,000Rs 1.5 lakh per financial year
(Source: indiapost.gov.in)

Out of these small savings schemes, investment in the five-year term deposit (fixed deposit), Senior Citizen Savings Scheme (SCSS), 15 year Public Provident Fund and National Savings Certificates (NSC) qualifies for income tax benefit under Section 80C of the Income Tax Act.



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