You Can Keep Your Money In Post Office Using These Financial Instruments

Post Office Accounts: Interest rates on government-run small savings schemes are revised from time to time

You Can Keep Your Money In Post Office Using These Financial Instruments

One can open a savings account at the post office and operate it using an ATM card.

India Post provides a slew of banking and remittance services. These include the nine small savings schemes - the 15-year Public Provident Fund, the Kisan Vikas Patra certificate scheme, the Sukanya Samriddhi scheme, the Senior Citizen Savings Scheme, four different types of fixed deposits etc. One can even open a savings account at a post office branch and operate it using an ATM card. Interest rates on these government-run small savings schemes are revised from time to time. For the quarter ending December 31, the interest rates are at 4-7.6 per cent.

Here are the current interest rates applicable to small savings schemes, effective till December 31, 2020:

1. Savings Account

Annual Interest Rate: 4%

Compounding Frequency: Annual

2. Time Deposit

The Post Office Time Deposit Account is available in four variations of maturity — also known as lock-in period. 

One Year

Annual Interest Rate: 5.5%

Compounding Frequency: Quarterly  

Two Years

Annual Interest Rate: 5.5%

Compounding Frequency: Quarterly

Three Years

Annual Interest Rate: 5.5%

Compounding Frequency: Quarterly

Five Years

Annual Interest Rate: 6.7%

Compounding Frequency: Quarterly 

3. Five-Year Recurring Deposit

Annual Interest Rate: 5.8%

Compounding Frequency: Quarterly

4. Senior Citizen Savings Scheme (SCSS)

Annual Interest Rate: 7.4%

Compounding Frequency: Quarterly

Payment Frequency: Quarterly 

5. Monthly Income Scheme (MIS)

Annual Interest Rate: 6.6%

Compounding Frequency: Monthly

Payment Frequency: Monthly

6. Kisan Vikas Patra (KVP)

Annual Interest Rate: 6.9% (matures in 124 months)

Compounding Frequency: Annual

7. Public Provident Fund

Annual Interest Rate: 7.1%

Compounding Frequency: Annual

8. Sukanya Samriddhi

Annual Interest Rate: 7.6

Compounding Frequency: Annual 

9. National Savings Certificate (NSC)

Annual Interest Rate: 6.8%

Compounding Frequency: Annual