Post Office Saving Schemes in India [Latest Interest Rates]

Post Office Saving Schemes in India include Savings Account, Fixed Deposits, Recurring Deposits, PPF (Public Provident Fund), NSC (National Saving Certificate), SCSS (Senior Citizen Saving Scheme), Sukanya Samriddhi Yojana, Monthly Income Scheme, Kisan Vikas Patra etc. These schemes can help you achieve short term to long term financial goals with fixed interest rates they provide.

Let us understand various Post Office Saving Schemes with latest interest rates.

List of Post Office Saving Schemes in India with Interest Rates

Below is the list of Post Office Saving Schemes with their details

Let us explore more details about each of them.

Savings Account

Savings Deposit (or Savings Account) is the most common type of deposit which almost everyone has
This is the account in which mostly people keep their money or funds in Post Office or Banks and make most number of Transactions – credit and debit
The interest rate in this quarter is 4% in Post Office but it would be less in other banks
Interest amount in Savings Deposit is calculated on Daily Lowest Balance and the amount is credited at the end of quarter
This means you get quarterly compounding in Saving Account

WATCH: How Savings Account Interest is Calculated

Fixed Deposits

Fixed Deposit is also called as Term Deposit
The Term Deposit or Fixed Deposit interest rates varies between 6.9% to 7.5% depending upon the tenure of Term Deposits
You deposit a principal amount decided by you and you receive quarterly interest which is paid to you after FD maturity in case of cumulative FD, or your receive regular payouts in case of non-cumulative FD
Cumulative FD gives you higher returns compared to non-cumulative FD, mainly due to reinvestment of interest amounts after every quarter
Fixed deposits have higher interest rates compared to Savings or Recurring Deposits interest rates
Higher interest rates makes FD more attractive as a conservative instrument
Irrespective of interest rates, the goal you are trying to achieve should be considered while opening of a Fixed Deposit
If you have a lump sum amount that you need after 1 year, than Fixed deposit is the best place to keep your had earned money with some additional interests amount

Fixed Deposit Interest Calculation Video

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Recurring Deposits

Recurring Deposit is the type of account you open considering a goal in mind which are usually short term – 6 months to 2 years
The interest rate for 5 year recurring deposit is 6.7% in this quarter
You regularly deposit in your recurring deposit account for a predefined period and accumulate sufficient amount to reach your goal
While you deposit your money in recurring deposit, you get interest amounts based on the interest rate that is set during recurring deposit account opening
The goals for opening an RD can be to pay for the next insurance premium, buying a new phone, etc.
So instead of paying EMIs on such goals, you open recurring deposit account as a part of planning for your goal
In this way, you accumulate sufficient amount to achieve the goal rather than buying things and paying later
Another advantage of opening recurring deposit is that you earn additional interest instead of paying this additional interest which happens in paying the EMIs (in case your convert the buying amount to EMIs)
The calculation of recurring deposit interest is similar to that of Fixed Deposit Interest Calculation. Compounding is done on quarterly basis in most of the banks

NSC (National Saving Certificate)

National Savings Certificate (NSC) scheme is a fixed income scheme which also helps you to save income tax under Section 80C with old tax regime
The current interest rate for National Saving Certificate (NSC) is 7.7% annually for 5 years NSC
It is one of the popular savings instruments in India.
One can activate this scheme at any Post Office.
NSC scheme is the Government of India initiative. Hence it guarantees returns.

Post Office Monthly Income Scheme (MIS)

As the name says, Post office monthly income scheme provides you with monthly income based on your deposit amount
Maximum investment is Rs. 9 lacs in a single account and Rs. 15 lacs jointly
Current Interest rate for MIS is 7.4% annually.
Account can be opened single, jointly, Minor (above 10 years of age) or a guardian on behalf of minor.
Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts (Rs. 9 Lakh).
Single account can be converted into Joint and Vice Versa.
Maturity period is 5 years.
Interest can be drawn through auto credit into savings account standing at same post office, or ECS. In case of MIS accounts standing at CBS Post offices, monthly interest can be credited into savings account standing at any CBS Post offices.
Can be prematurely encashed after one year but before 3 years at the discount of 2% of the deposit and after 3 years at the discount of 1% of the deposit. (Discount means deduction from the deposit.).
Interest shall be payable to the account holder on completion of a month from the date of deposit.
If the interest payable every month is not claimed by the account holder such interest shall not earn any additional interest.

PPF (Public Provident Fund)

PPF or Public Provident Fund is a savings scheme offered by the Government of India.
PPF has a lock-in period of 15 years
Minimum deposit amount in a FY to keep your PPF account active is Rs. 500
Maximum deposit amount for which you can earn interest in PPF account is Rs. 1,50,000
The interest on the account is paid by the government of India and is set every quarter, It is also tax-free.
PPF interest is calculated every month and is compounded annually
The applicable PPF interest rate for October to December 2024, has been fixed at 7.1% annually.
PPF or Public Provident Fund falls under EEE category (Exempt, Exempt, Exempt), which means, the Deposits, Interest and Maturity Amounts are all exempted from Income Tax
Partial withdrawals are allowed in PPF account
Loan facility is also available in PPF account

Rs. 1000 PPF vs Mutual Fund Returns Calculation Video

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SCSS (Senior Citizen Saving Scheme)

Senior citizen saving scheme is a post office scheme for senior citizens, that helps you to get quarterly interest
Investing in SCSS is a good opportunity for senior citizens above 60 years to make money.
Current Interest rate is 8.2% annually
This is an effective and long-term saving option which offers security and added features that are usually associated with any government-sponsored savings or investment scheme.
An individual can invest a maximum amount of Rs. 30 lakh, individually or jointly in an SCSS account (in multiples of Rs.1,000).
The amount invested in the scheme cannot exceed the money that has been received on retirement.
Hence, the individual can invest either Rs.15 lakh or the amount received as a retirement benefit, whichever is lower.
The account can be opened by cash for an amount below Rs.1 lakh and by cheque for an amount exceeding Rs.1 lakh.

Sukanya Samriddhi Yojana

Sukanya Samriddhi Yojana scheme is for your girl child
Attractive interest rate of 8.2%, that is fully exempt from tax under section 80C.
Minimum Rs. 1000 can be invested in one financial year (April to March)
Maximum investment of Rs. 1,50,000 can be made in one financial year (April to March)
If the minimum amount of Rs 250/- is not deposited in any financial year, a penalty of Rs 50/- will be charged
Deposits in an account can be made till completion of 14 years, from the date of opening of the account
The account shall mature on completion of 21 years from the date of opening of the account, provided that where the marriage of the account holder takes place before completion of such period of 21 years, the operation of the account shall not be permitted beyond the date of her marriage
Passbook will be issued to customers
Withdrawal Facility
To meet the financial requirements of the account holder for the purpose of higher education and marriage, account holder can avail partial withdrawal facility after attaining 18 years of age.
If the beneficiary is married before maturity of account, account has to be closed.
Monthly interest is calculated and compounding frequency is annual
You can open a maximum of 2 accounts in a family

Frequently Asked Questions

Which is the best saving scheme in post office?

The best saving scheme in post office depends on your goals. For short term goals you can open Fixed deposit or recurring deposits. For income tax saving and long term goals, you can use National Saving Certificate (NSC), Public Provident Fund (PPF), Sukanya Samriddhi Yojana, and for senior citizens or to get monthly income you can use senior citizen saving scheme or monthly income scheme. Highest interest in post office is provided Sukanya Samriddhi and Senior citizen saving scheme in post office

Which post office scheme gives 8% interest?

Sukanya Samriddhi Yojana and Senior Citizen saving scheme are currently giving 8.2% interest rate in post office which are reviewed after every quarter

What is the disadvantage of post office saving?

Some disadvantages include is non presence of online maintenance of account and making transactions, and hence maintaining the physical copy of account passbooks or certificates.

What is the 1000 per month scheme in post office?

You can get monthly income using post office monthly income scheme. Rs. 1.7 Lakh investment in this scheme can provide you monthly income of Rs. 1000. Watch Monthly Income Scheme calculation video to know more details of how this scheme works.

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