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Interest Rates Of Post Office Small Savings Schemes: PPF, Sukanya Samridhi, SCSS, NSC

If you are thinking of investing and want to invest in a safe place, then you can invest in post office small saving schemes. Post office scheme is one the popular schemes of Indian government. So the post office scheme is a very safe investment plan where you do not have any kind of risk, different type scheme is given to the customer by the post office, through which the customer gets a good return, therefore the customers are quite satisfied with this.

Post Offices Scheme is a very safe and best investment plan and there are many people in India who invest their money in Post Offices. If you also want to invest in Post Office Scheme, then here you will get some good info about post office saving schemes. We will describe each of them from which you can select any scheme according to you.

Some Popular Post Office Saving Schemes 2021

Interest Rates Of Post Office Small Savings Schemes credityatra

1. Post Office Monthly Income Scheme

Monthly Income Scheme is a safe and secure monthly income plan and it is the best investment plan for retired employees and senior citizens and it is a 5 Years plan. In post office monthly plan, you have to deposit every month according to the plan you have selected.

You have to deposit money every month for 5 years. In the post office monthly plan, you get an interest of 8.5% rate of interest, in the post office monthly plan, you can select a plan of Rs.1500 and a maximum of 4 lakhs. It is the best savings option if you choose the monthly scheme of the post office for your future protection.

According to the 8.5% interest rate in the post office monthly plan, you can get good returns. The maturity period of this plan is also available for 5 years, so if you are looking for a safe investment option fund, then you can invest in it, it is a safe and risk free investment option.

Interest Rates of Post Office Monthly Income Scheme

Interest rates as of 2021 are tracked as 8.5% per annum.

Minimum amount for Post Office Monthly Income Scheme

  • You can start investing with Rs. 1500 / –
  • The maximum investment limit is Rs 4 lakh in a single account and Rs 9 lakh in a joint account. In the same way, there are many more.

Key Features of Post Office Monthly Income Scheme

  • Account can be opened individually.
  • Joint account can be opened by two or three adults.
  • Single account to joint account and joint account to single account can be changed.
  • All joint account holders have an equal share in each joint account.
  • After reaching adulthood, the minor has to apply for transfer of account in his name.

2. Post Office Time Deposit Scheme

In the post office time deposit scheme, an account is opened by an individual or two adults. The deposit scheme can be for 1 Year, 2 Years, or 5 Years and the rate of interest varies from within it. 7.7%, 7.8%, 8.4%, 8.5 respective to years.

And tell you that if you take a 5-year plan inside it, then you will have a good benefit because inside it, you will can take benefit of Income Act 1961 under 80C TD. Although you can invest a minimum of Rs. 200 with no limit on the maximum, so this is a good Post Office Scheme.

3. Post Office Savings Account

The way you have a savings account in a bank. Similarly, you can open your savings account in the post office and deposit money in it. Just as the bank gives the interest on the money deposited by you, in the same way the post office also serves interest on the money deposited by you.

This saving account scheme gives good interest on money. You get a interest of 4% rate in the post office savings account. Anyone can open their post office savings account with ease and get 4% interest on their money.

Interest Rates of Post Office Savings Account Scheme

4.0% per annum on individual / joint account

Minimum amount for Post Office Savings Account Scheme

Rs.20 / – to open an account

Key Features of Post Office Savings Account Scheme

  • Post Office Savings Account can be opened by cash only.
  • The minimum balance required in a non-cheque facility account is Rs. 50 / -.
  • If you want to open an account with a cheque, then it will be open for at least Rs 500, so the minimum balance in such an account is Rs. 500 / – is required.
  • Cheque facility can also be availed in any existing account, that means, you can pay your installments by cheque too.
  • Nomination facility is available at the time of account opening and can even update after opening the account.
  • This account can be transferred from one post office to another post office.
  • A joint account can be opened by two or three adults.
  • A single account can be converted into a joint account and a joint account can be converted into a single account easily.
  • Deposits and Withdrawals can be made through any electronic mode at CBS Post Offices.
  • ATM facility is also available.

4. National Savings Certificate (NSC)

This post office scheme is best scheme option for the government employees. It is very useful for Employees, Merchants, and other Salaried Persons. Within this there is no limit on the maximum deposit and there is no tax privilege in it.

And you can use this certificate to take a loan from the bank and in it your investment is kept absolutely safe and if you invest above 1 lakh in it, then tax is discharged.

Interest Rates of National Savings Certificate Scheme

The interest rates from 2021 are as follows: –

  • 8% compounded annually but payable at maturity.
  • After 5 years, Rs 100 / – increases to Rs 140 / –

Minimum amount for National Savings Certificate Scheme

Minimum amount is Rs 100 and there is no maximum limit in multiples of Rs 100.

Key Features of National Savings Certificate Scheme

  • NSC certificate can be purchased by a single holding or minor.
  • The maturity period of NSC is 5 years. The NSC has an interest rate of 8% per annum, compounded yearly, but payable at maturity.
  • With an investment of Rs 100, you can take this scheme. There is no maximum limit on investment. You can simply invest Rs 500, Rs 1,000, Rs 5,000 and Rs 10,000.
  • Investment in NSC is tax deductible under Section 80C of Income Tax Act. Interest on NSC is also considered reinvested under Section 80C and is therefore tax deductible, excluding interest in the final year of NSC.
  • NSC certificates can be mortgaged to protect bank loans.
  • Certificates are transferable. Transfer from one person to another is allowed only once during the investment period.

Also read: 10 Budget Saving Smart Tips To Grow Your Monthly Income

5. Public Provident Fund Scheme (PPF)

Public Providence Fund Account is the best post office saving scheme. This is a long term best investment plan for both a salaried person or a businessman. You can invest up to Rs.1,00,000 per year in Public Providence Fund Account.

So tax is waived under 80C. This scheme of Public Provident Fund Account is for 15 years. If you are planning on a good and long term investment, then in that case a public provident fund account is a perfect option for you. If you invest money in it, then you will get benefit from it in a long term.

Interest Rates of Public Providence Fund Scheme

The interest rates from 2021 are as follows: –

8% per annum (annual compounding)

Minimum amount for Public Providence Fund Scheme

  • Minimum Rs.500 / – and maximum Rs.1,50,000 / – in a financial year
  • The deposit can be made in a lump sum or in 12 installments.

Key Features of Public Providence Fund Scheme

  • A joint account cannot be opened.
  • A person can also open an account with Rs 100 / – but he has to deposit a minimum of Rs 500 / – and a maximum of Rs.150,000 / – in a financial year.
  • Account can be opened by cash / check.
  • Nomination facility is available at the time of account opening and even after opening the account.
  • This account can also be transferred from one post office to another.
  • Under Section 70C of the IT Act, the amount deposited will be eligible for tax deduction from income. In short, the interest is completely tax-free.

6. Senior Citizen Savings Scheme (SCSS)

Senior Citizen Savings Scheme (SCSS) account is for those who are 60 years of age, it is a special facility for them. Although, it is a voluntary retirement plan and there is no age limit for the person working in the defense service.

And in this, under Income Tax Act Sec 80c, tax is also exempted. Monthly Income Scheme (MIS) and Senior Citizen Savings Scheme (SCSS) get good interest benefit. So if you are 60 years old, then you can take advantage of this scheme and make safe investments inside it.

Interest Rates of Senior Citizen Savings Scheme

The interest rates from 2021 are as follows: –

6.4% pa, interest will be payable from the date of first deposit.

Minimum amount for Senior Citizen Savings Scheme

Rs 1000 / – can be used to start an investment which may not exceed Rs. 15 lakhs.

Key Features of Senior Citizen Savings Scheme

  • Individuals 60 years of age or older can open an account.
  • Persons who are 55 years or older but below 60 years of age who have retired under seniority or VRS, can open an account under this condition.
  • Its maturity period is 5 years.
  • TDS is deducted from the source of interest if the amount of interest is more than Rs. 10,000 / – per annum.
  • Under this scheme, investments can be made for availing the benefit of Section 80C of the Income Tax Act, 1971.
  • In case of SCSS accounts, quarterly interest will be payable on the first working day of April, July, October and January. This will be applicable to all CBS Post Offices.

7. Kisan Vikas Patra (KVP) Scheme

In view of the farmers of rural areas of the country, this Kisan Vikas Patra (KVP) scheme has been made, this scheme can be taken by any farmer for his or her children and two people can also jointly take this scheme. You get interest at the rate of 6.9% in this scheme, which means your money doubles in about 124 months (10 years & 4 months).

This scheme can be taken for a minimum of 1000 rupees and there is no limit of more, it gets certificates in it and they are available according to your scheme. It is available in the form of certificates of denominations of 1000, 5000, 10,000 i.e. if you have started the scheme with 20,000 rupees then you will get two certificates of 10,000 – 10,000 rupees. And the certificate can be transferred from one post office to another. It can also be redeemed after 2.5 years if required but the interest will be very less.

Interest Rates of Kisan Vikas Patra Scheme

The interest rates from 2021 are as follows: –

  • 6.9% compound annual
  • In 112 months (4 years and 6 months) the amount invested doubles.

Minimum amount for Kisan Vikas Patra Scheme

Minimum amount for Kisan Vikas Patra Scheme
Minimum amount for Kisan Vikas Patra Scheme

Minimum amount is Rs 1000 and there is no maximum limit in multiples of Rs 1000.

Key Features of Kisan Vikas Patra Scheme

  • This certificate can be taken by an adult for himself or on behalf of a minor or by two adults.
  • KVP can be taken from any departmental post office.
  • A nomination facility is available.
  • Kisan Vikas Patra can be transferred from one person to another and from one post office to another post office.
  • Key Features of Kisan Vikas Patra Scheme
    Key Features of Kisan Vikas Patra Scheme

8. National Savings Recurring Deposit Scheme (RD)

If someone wants to invest with small installments, then this plan is absolutely right because at least 100 rupees can be invested in this plan and there is no maximum limit of this account of the post office. Every month they are opened before the 15th and its installment also has to be given before the 15th of every month.

Interest is paid at 5.8% per year in this account, but interest is compounded quarterly and you can easily transfer the account from one post office to another.

Interest Rates of National Savings Recurring Deposit Scheme

The interest rates from 2021 are as follows: –

  • 5.8% annually (quarterly compounding)
  • After maturity, it can be continued for 5 years on a year-to-year basis.

Minimum amount for National Savings Recurring Deposit Scheme

You can start investing with a minimum of Rs.100 per month and there is no maximum limit in multiple to Rs 10.

Key Features of National Savings Recurring Deposit Scheme

  • The account can be opened by cash / cheque and in case of cheque, only the date of presentation of the cheque will be considered as the date of deposit.
  • This account can be opened at any post office.
  • A joint account can be opened by two adults.
  • A discount is available on the advance deposit of at least 6 installments, that is, if any investor deposits 6 installments in advance, then there can be a discount.
  • An account can also be opened in the name of a minor person. Minors aged 10 years and above can also open and operate an account.

Post Office Scheme 2021 Interest Rate

Small Savings Scheme Interest Rate Tax Deduction on Investment? Interest Taxable
Post Office Savings Account 4.0% No Yes
Post Office Recurring Deposit 7.2% No Yes
Post Office Monthly Income Scheme 7.6% No Yes
Post Office Time Deposit (1 year) 6.9% No Yes
Post Office Time Deposit (2 year) 6.9% No Yes
Post Office Time Deposit (3 year) 6.9% No Yes
Post Office Time Deposit (5 year) 7.7% Yes Yes
Kisan Vikas Patra (KVP) 7.6% No Yes
Public Provident Fund (PPF) 7.9% Yes No
Sukanya Samriddhi Yojana 8.4% Yes No
National Savings Certificate 7.9% Yes No
Senior Citizens Savings Scheme 8.6% Yes Yes

Post Office Schemes Related FAQs

Question: – How do I invest in the Post Office Monthly Income Scheme?

Answer: The post office monthly income plan is a low-risk plan with a steady income. One per month can invest up to 4 lakhs and earn 7.7% interest per year. To invest in the post office scheme, every person must have an MIS account. Any resident can open an MIS account either individually or jointly. The minimum investment for this scheme is 1500 rupees.

Question: – Can I withdraw money from any post office?

Answer: Yes, money can be withdrawn from the post office account and from any post office. Also, the account holder can withdraw funds anytime, though in the case of a general account, Rs. 50 Minimum balance should be maintained.

Question: – How much can I withdraw from the post office account?

Answer: A maximum of Rs 10,000 cash can be withdrawn daily from a post office account. But, with the use of the post office ATM card, Rs. 25,000 can be withdrawn daily.

Question: -Can I check my post office account online?

Answer: Yes, the Indian Post Office enables its account holders to access their respective account details etc. using internet banking facility. To register themselves under net-banking, the customer must have a valid personal or joint account, KYC documents and an active DOP card.

Question: Is the post office investment safe and tax free?

Answer: Yes, it is protected as an investment under the post office bear sovereign guarantee of the Government of India. All these schemes are tax exempt to a certain extent and some schemes like PPF, Sukanya Samriddhi Yojana also have tax benefits on returns.

Q: Is there any post office scheme for the students?

Answer: All schemes except the Senior Citizen Savings Scheme can be availed by students above the age of 18 years. Sukanya Samriddhi Yojana (SSY) is a scheme for girl students, in which parents are required to deposit a specified standard of minimum maturity or above and when it turns 21, it is given to girls.

Here are Post office interest rates Table 2021, sukanya samriddhi yojana interest rate 2021-22 in the post office, Post Office Fixed Deposit interest rates 2021, Post Office Monthly Income Scheme interest rate 2021

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