A Quick Look at Interest Rates on Post Office Saving Schemes Like PPF, NSC, after the Recent Revision

Post Office Savings Schemes are the most well-known and easily accessible savings accounts in India. The minimum and maximum balances that can be kept are both Rs.500. A single account may only be opened by the individual. Let's take a look at some post office saving schemes, their features and latest interest rates.

National Saving Time deposit Account

Features -

• Deposits under post office time deposit schemes can be made for one, two, three, or five years, and only one deposit can be made in a single account.
• This post office scheme guarantees the account holder's investments.
• Time deposit accounts have an easy transfer facility, they can be transferred from one post office to another. Time deposit accounts can be operated solely or jointly. Account holders can extend the maturity date of a time deposit account.

Interest rates

Tenure	Rate of Interest
1 year	5.50%
2 year	5.70%
3 year	5.8
5 year	6.7

Senior Citizen Saving Scheme

Features-

• SCSS has a 5-year maturity period.
• A depositor/subscriber in SCSS can have an individual or joint account with their spouse. The spouse does not have to be a senior citizen, and the first depositor is considered the investor. Furthermore, the maximum deposit limit in the joint account remains at Rs. 15 lakhs (in multiples of Rs. 1000). Individuals may open multiple accounts, but the total balance in all accounts cannot exceed Rs. 15 lakh.
• This Scheme allows for account nominations to be made before or after the account is opened. Any person can be nominated by the depositor by completing Form C.
• The account can be easily moved from one post office to another.

Rate of interest

The rate of interest on senior citizen saving schemes is 7.6%. from 1 october 2022.

Public Provident Fund (PPF)-

Features

• Individuals will be able to open accounts for a fee of Rs.100. The account can be opened with a check or cash. In the case of cheque payments, the account opening date is the date the cheque is realised.
• Nominees can be added during the account opening process or after the account has been opened.
• After 15 years, the account matures. Individuals, on the other hand, will be able to extend it by another 5 years by requesting an extension 1 year before maturity. Without additional deposits, the maturity value can remain the same.
• Individuals will be able to withdraw funds from the account on a yearly basis after six fiscal years from the date of opening.
• Preclosure is not possible before the 15-year maturity period.

Rate of Interest-

The Rate of interest on PPF account is 7.1% per annum from 1 April 2020.

Sukanya Samridhi Yojana-

Features-

• The Government of India initiated this programme.
• Parents/Guardians with daughters under the age of ten can open a Sukanya Samriddhi Yojana account.
• Tenure of 21 years or until the girl child reaches the age of marriage after the age of 18
• Annual compound interest rate of 6%
• Section 80C of the Income Tax Act provides for a tax exemption.
• Accounts must be opened in the child's name only, not in the name of their legal guardian.

Rate of interest-

Rate of interest on Sukanya Samridhi Yojana is 7.6% per annum from 1 April 2020.

Kisan Vikas Patra-

Features-

• A Kisan Vikas Patra account can be opened with a Rs. 1,000 initial deposit.
• The maturity period of the KVP may change due to rate changes made by the Ministry of Finance. The maturity value, on the other hand, is pre-printed on the certificate.
• The maturity period of the KVP may change due to rate changes made by the Ministry of Finance. The maturity value, on the other hand, is pre-printed on the certificate.

Rate of interest-

The rate of interest on Kisan Vikas Patra 7.0% and the amount doubled in 123 months.