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Here's How Much Return Your Post Office Investment Will Fetch In April-June

India Post, which has a network of over 1.5 lakh post offices across the country, provides nine small savings schemes such as PPF, KVP, TD and RD.

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Here's How Much Return Your Post Office Investment Will Fetch In April-June

PPF interest rate: The interest rates on the 15-year small savings scheme are reviewed every quarter


Interest rates applicable to small savings schemes - such as the retirement planning-focused 15-year Public Provident Fund (PPF), the tax-saving fixed deposit and Senior Citizen Savings Scheme (SCSS) - are reviewed every quarter. For the first quarter of financial year 2019-20, which begins on Monday, April 1, the government has left the small savings schemes' interest rates unchanged at existing levels. This means that for the April-June quarter, investment in small savings schemes with continue to fetch interest at the rates to the tune of 4-8.7 per cent, according to India Post's website - indiapost.gov.in. 

India Post, which operates a network of more than 1.5 lakh post offices across the country, offers nine small savings schemes under its portfolio. From savings to fixed deposit and recurring deposit, the post office today offers several types of investment options to the retail customer.

Here's a comparison of the interest rate and investment limits applicable to these small savings schemes (including Public Provident Fund) for the quarter beginning April 1, 2019:

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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