Want To Keep Your Money In Post Office? Check Out Latest Interest Rates

For the current quarter, which ends on December 31, these savings schemes provide interest rates to the tune of 4-7.6%

Want To Keep Your Money In Post Office? Check Out Latest Interest Rates

India Post provides a range of banking and remittance services.

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:

InstrumentRate Of Interest (Effective From April 1, 2020 to December 31, 2020Compounding Frequency
Post Office Savings Account4%Annually
1-Year Time Deposit5.5% (annual interest of Rs 561 on deposit of Rs 10,000)Quarterly
2-Year Time Deposit5.5% (annual interest of Rs 561 on deposit of Rs 10,000)Quarterly
3-Year Time Deposit5.5% (annual interest Rs 561 on deposit of Rs 10,000)Quarterly
5-Year Time Deposit6.7% (annual interest of Rs 687 on deposit of Rs 10,000)Quarterly
5 Year Recurring Deposit Scheme5.8% Quarterly
Senior Citizen Savings Scheme7.4% (quarterly interest of Rs 185 on deposit of Rs 10,000)Quarterly and Paid
Monthly Income Account6.6% (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 Scheme7.10%Annually
Kisan Vikas Patra6.9% (matures in 124 months)Annually
Sukanya Samriddhi Account Scheme7.60%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.