Post office savings schemes offer both savings and income tax benefits to depositors of various schemes. There are 9 post office schemes as of now and interest rates are revised once in every three months.
The nine schemes are:
- Post Office Savings Account
- 5-Year Post Office Recurring Deposit Account (RD)
- Post Office Time Deposit Account (TD)
- Post Office Monthly Income Scheme Account (MIS)
- Senior Citizen Savings Scheme (SCSS)
- 15 year Public Provident Fund Account (PPF)
- National Savings Certificates (NSC)
- Kisan Vikas Patra (KVP)
- Sukanya Samriddhi Accounts
Post Office Savings Account
The interest rate is 4.0% per annum on individual and joint accounts. A minimum of Rs 20/- is required for opening a post office savings account. The account can be opened by cash only.
5-Year Post Office Recurring Deposit Account (RD)
From the 1st of January 2018, the interest rates applicable are:
- 6.9% per annum (quarterly compounded)
- On maturity Rs 10/- account fetches Rs 717.43 and can be continued for another 5 years on year to year basis.
Post Office Time Deposit Account (TD)
The interest on the deposits are calculated quarterly (one every 3 months) but deposited in accounts once a year (annually).
From 1st of January 2018, the interest rates applicable are:
Post Office Monthly Income Scheme Account (MIS)
The interest rates applicable from 1st January 2018 is 7.3% per annum. This interest is paid to your account on a monthly basis.
The minimum amount to open a MIS account is Rs 1,500.
Senior Citizen Savings Scheme (SCSS)
From the 1st of January 2017, 8.3% per annum interest rate is applicable. The interests are paid on 31st March, 30th June, 30th Sept and 31st December.
15 year Public Provident Fund Account (PPF)
7.6% per annum is the interest rate applicable from 1st of January 2018. The minimum deposit to be made is Rs 500 and the maximum limit is Rs 1.5 lakhs per financial year.
You can deposit the money in 12 monthly installments or in a lumpsum.
National Savings Certificates (NSC)
From 1st of January 2018, interest rates are:
- 7.6% which is compounded annually but payable at maturity.
- Rs 100/- grows to INR 144.23 after 5 years
Kisan Vikas Patra (KVP)
Interest rates from the 1st of January 2018 are as follows:
- 7.3% compounded annually
- Amount invested doubles in 118 months (9 years & 10 months)
Sukanya Samriddhi Accounts
The rate of interest is 8.1% per annum with effect from 1st January 2018 and is calculated on yearly basis. Its is compounded yearly.