Post office schemes Interest rate table | Benefits | returns calculator in 2023

Post Office scheme | Post Office Interest Rates Table 2023 | Post Office Savings Account​​ | Time Deposit | Recurring Deposit | FY 2022-23

This post was most recently updated on January 3rd, 2023

Post office schemes are extremely popular amongst retail investors in India because it gives slightly higher interest rates compared to other banks and offers a wide range of investment options. The investment in the Post office scheme is seen as an investment that is extremely secure since it’s backed by the Govt of India.

There are many types of Post office schemes. In this article, we will go through in detail of what are the Post office scheme, interest rates, and eligibility criteria and try to compare them with other investment choices available in the market.

post office scheme
Post office scheme in 2023

Page Contents

What are the different types of Post office schemes available?

There are mainly 9 types of Post office schemes available to invest in, they are:

  1. Post Office Savings Account(SB)  
  2. Post Office National Savings Recurring Deposit Account(RD) 
  3. Post Office National Savings Time Deposit Account(TD) / Post Office fixed deposits
  4. Post Office National Savings Monthly Income Account(MIS)
  5. Post Office Senior Citizens Savings Scheme Account(SCSS) 
  6. Post Office Public Provident Fund Account(PPF) 
  7. Post Office Sukanya Samriddhi Account(SSA)
  8. Post Office National Savings Certificates(NSC)
  9. Post Office Kisan Vikas Patra(KVP)

Latest Post office scheme interest rates table

Latest Post office scheme interest rates table in 2023:

Sl.No.InstrumentsRate of interest w.e.f 01.01.2023 to 31.03.2023Compounding Frequency*
01.Post Office Savings Account​​4.0Annually
02.1 Year Time Deposit6.6(Annual Interest R. 677 on Rs. 10000 deposit)Quarterly
03.2 Year Time Deposit​​6.8(Annual Interest R. 697 on Rs. 10000 deposit)Quarterly
04.3 Year Time Deposit​​6.9(Annual Interest Rs. 708 on Rs. 10000 deposit)Quarterly
05.5 Year Time Deposit7.0(Annual Interest R. 718 on Rs. 10000 deposit)Quarterly
06.5 Year Recurring Deposit Scheme​​5.8 Maturity value for Rs. 100 Dn. 5 Year = 6969.67 After extension with deposit. 6 Year = 8620.98 7 Year= 10370.17 8 Year= 12223.03 9Year= 14185.73 10Year=16264.76Quarterly
07.Senior Citizen Savings Scheme​​8.0(Quarterly interest Rs. 200 on Rs. 10000 deposit)Quarterly and Paid
08.Monthly Income Account​​7.1(Monthly int. Rs. 59 on Rs. 10000 deposit)Monthly and paid
09.National Savings Certificate (VIII Issue)7.0(Maturity Value ₹1403 on ₹1000 deposit)Annually
10.Public Provident Fund Scheme​​7.1Annually
11.Kisan Vikas Patra​​7.2 (will mature in 120 months)Annually
12.Sukanya Samriddhi Account Scheme​​7.6Annually
Latest Post office scheme interest rates table

Post Office Savings Account(SB)  

A post office savings account is like any ordinary bank savings account. You can deposit, withdraw or make any transactions as you can do with any of your bank accounts.

Post Office Savings Account(SB) eligibility criteria

Below are the Post Office Savings Account(SB) eligibility criteria:

  • a single adult 
  • two adults only (Joint A or Joint B) 
  • a guardian on behalf of a minor 
  • a guardian on behalf of a person of unsound mind 
  • a minor above 10 years in his own name

Post Office Savings Account(SB)  features

Feature of Post Office Savings Account:

  • Interest rate – 4% per annum
  • The minimum amount for account opening – is Rs 500
  • If no deposit/withdrawal takes place in an account during continuous three financial years, the account shall be treated as silent/dormant 

Post Office National Savings Recurring Deposit Account(RD) 

The National Savings Recurring Deposit Account(RD) is a preferred choice by many investors to park their surplus money to earn regular income. This is one of the most popular Post office schemes.

Post Office National Savings Recurring Deposit Account(RD) eligibility criteria

Post Office National Savings Recurring Deposit Account(RD) eligibility criteria:

  • a single adult 
  • Joint Account (up to 3 adults) (Joint A or Joint B) 
  • a guardian on behalf of a minor 
  • a guardian on behalf of a person of unsound mind 
  • a minor above 10 years in his own name.

Post Office National Savings Recurring Deposit Account(RD) features

Feature of Post Office National Savings Recurring Deposit Account:

  • Interest rate – 5.8​ % per annum (quarterly compounded)
  • Minimum INR 100/- per month or any amount in multiples of INR 10/-. No maximum limit.
  • The subsequent deposit shall be made up to the 15th day of the month if the account is opened up to the 15th of a calendar month. 
  • The subsequent deposit shall be made up to the last working day of the month if an account is opened between the 16th day and the last working day of a calendar month.

Post Office National Savings Recurring Deposit Account(RD) Loan

Here is how you can avail loan in Post Office National Savings Recurring Deposit Account:

  • After 12 installments are deposited and the account is continued for 1 year not discontinued depositor may avail loan facility of up to 50% of the balance credit in the account. 
  • Loans can be repaid in one lump sum or in equal monthly installments. 
  • Interest on the loan will be applicable as a 2% + RD interest rate applicable to the RD account. 
  • Interest will be calculated from the date of withdrawal to the date of repayment. 
  • In case the loan is not repaid till maturity, the loan plus interest will be deducted from the maturity value of the RD account.

Post Office National Savings Recurring Deposit Account(RD) Premature closure

Here is how you can do premature closure of the Post Office National Savings Recurring Deposit Account:

  • RD Account can be closed prematurely after 3 years from the date of account opening by submitting the prescribed application form at the concerned Post Office. 
  • PO Savings Account interest rate will be applicable if the account is closed prematurely even one day before maturity. 
  • No premature closure of the account shall be permissible until the period for which the advance deposits have been made.

Post Office National Savings Recurring Deposit Account(RD) maturity

Post Office National Savings Recurring Deposit Account(RD) maturity rules:

  • 5 years (60 monthly deposits) from the date of opening. 
  • An account can be extended for further 5 years by giving an application at the concerned Post Office. The interest rate applicable during the extension will be the interest rate at which the account was originally opened. 
  • The extended account can be closed at any time during the period of extension. For completed years, the RD interest rate will be applicable and for periods less than a year, the PO Savings Account interest rate will be applicable. 
  • RD account can be retained up to 5 years from the date of maturity without deposit also.

Post Office National Savings Time Deposit Account(TD) / Post Office fixed deposits

Post Office National Savings Time Deposit Account(TD) is like a fixed deposit; it has different maturity options and the interest depends on the maturity timeline. This is one of the most popular Post office schemes.

Post Office fixed deposits eligibility criteria

Post Office fixed deposits eligibility criteria:

  • a single adult 
  • Joint Account (up to 3 adults) (Joint A or Joint B) 
  • a guardian on behalf of a minor 
  • a guardian on behalf of a person of unsound mind 
  • a minor above 10 years in his own name.

Post Office fixed deposits features

Interest rates as of 2023. Interest is payable annually but calculated quarterly.

InstrumentsRate of interest w.e.f 01.01.2023 to 31.03.2023Compounding Frequency*
1 Year Time Deposit6.6(Annual Interest R. 677 on Rs. 10000 deposit)Quarterly
2 Year Time Deposit​​6.8(Annual Interest R. 697 on Rs. 10000 deposit)Quarterly
3 Year Time Deposit​​6.9(Annual Interest Rs. 708 on Rs. 10000 deposit)Quarterly
5 Year Time Deposit7.0(Annual Interest R. 718 on Rs. 10000 deposit)Quarterly
Post Office fixed deposits interest rates

Post Office fixed deposits premature closure rules

Post Office fixed deposits premature closure rules:

  • No deposit shall be withdrawn before the expiry of six months from the date of deposit. 
  • If the TD account is closed after 6 months but before 1 year, the PO Savings Account Interest rate will be applicable. 
  • If a 2/3/5 year TD account prematurely closed after 1 year, interest shall be calculated at 2 % less than of TD interest rate (i.e. 1/2/3 years) for completed years, and for a part period less than a year, PO Savings Interest rates will be applicable. 
  • TD account can be closed prematurely by submitting the prescribed application form with a passbook at the concerned Post Office. 

Post Office National Savings Monthly Income Account(MIS)

Post Office National Savings Monthly Income Account(MIS) is a great choice for retired persons or someone who wants regular income from fixed investments. This post office scheme is preferred by retired personnel to earn regular income.

Post Office National Savings Monthly Income Account(MIS) eligibility criteria

Post Office National Savings Monthly Income Account(MIS) eligibility criteria:

  • a single adult 
  • joint Account (up to 3 adults) (Joint A or Joint B)) 
  • a guardian on behalf of a minor/ person of unsound mind 
  • a minor above 10 years in his own name.

Post Office National Savings Monthly Income Account(MIS) features

As of 2023 Interest rate in Post Office National Savings Monthly Income Account(MIS) is 7.1 % per annum payable monthly.

Minimum and Maximum investment amount

  • In multiples of INR 1000/-
  • The maximum investment limit is INR 4.5 lakh in a single account and INR 9 lakh in a joint account
  • An individual can invest a maximum of INR 4.5 lakh in MIS (including his share in joint accounts)
  • For the calculation of the share of an individual in the joint account, each joint holder has an equal share in each joint account.

Post Office National Savings Monthly Income Account(MIS) premature closure rules

  • No deposit shall be withdrawn before the expiry of 1 year from the date of deposit. 
  • If an account is closed after 1 year and before 3 years from the date of account opening, a deduction equal to 2% from the principal will be deducted and the remaining amount will be paid. 
  • If the account is closed after 3 years and before 5 years from the date of account opening, a deduction equal to 1% from the principal will be deducted and the remaining amount will be paid. 
  • The account can be prematurely closed by submitting the prescribed application form with the passbook at the concerned Post Office.

Post Office Senior Citizens Savings Scheme Account(SCSS) 

Post Office Senior Citizens Savings Scheme Account(SCSS) is a popular This is one of the most popular Post office scheme choices amongst retired persons. It gives higher interest rates than conventional investment choices.

Post Office Senior Citizens Savings Scheme Account(SCSS) eligibility criteria

  • An individual above 60 years of age. 
  • Retired Civilian Employees above 55 years of age and below 60 years of age, subject to the condition that investment is to be made within 1 month of receipt of retirement benefits. 
  • Retired Defense Employees above 50 years of age and below 60 years of age, subject to the condition that investment is to be made within 1 month of receipt of retirement benefits. 
  • The account can be opened in individual capacity or jointly with a spouse only. 
  • The whole amount of deposit in a joint account shall be attributable to the first account holder only.

Post Office Senior Citizens Savings Scheme Account(SCSS) features

As of 2023 Interest rate – 8.0 ​% per annum, payable from the date of deposit of 31st March/30th Sept/31st December in the first instance & thereafter, interest shall be payable on 31st March, 30th June, 30th Sept, and 31st December.

Minimum and Maximum investment amount – There shall be only one deposit in the account in multiple of INR.1000/- maximum not exceeding INR 15 lakh.

Post Office Senior Citizens Savings Scheme Account(SCSS) premature closure rules

Post Office Senior Citizens Savings Scheme Account(SCSS) premature closure rules:

  • The account can be prematurely closed any time after the date of opening. 
  • If the account closed before 1 year, no interest will be payable, and any interest paid in the account shall be recovered from the principal. 
  • If the account is closed after 1 year but before 2 years from the date of opening, an amount equal to 1.5 % will be deducted from the principal amount. 
  • If the account is closed after 2 years but before 5 years from the date of opening, an amount equal to 1 % will be deducted from the principal amount. 
  • The extended account can be closed after the expiry of one year from the date of extension of the account without any deduction.

Post Office Public Provident Fund Account(PPF) 

Post Office Public Provident Fund Account(PPF) is one of the most popular investment options. PPF is seen as a wealth creator by many Indians as it provides higher interest rates, qualifies for tax exemption, and is also tax-free on the gains when it matures.

Post Office Public Provident Fund Account(PPF) eligibility criteria

Below are the eligibility criteria for a PPF account in the Post office:

  • a single adult by a resident Indian. 
  • a guardian on behalf of a minor/ person of unsound mind. 
  • Retired Defense Employees above 50 years of age and below 60 years of age, subject to the condition that investment be made within 1 month of receipt of retirement benefits. 

Post Office Public Provident Fund Account(PPF) features

As of 2023 , the Interest rate in Post Office Public Provident Fund Account(PPF) is 7.1 % per annum (compounded yearly).

Minimum and Maximum investment amount – Minimum INR. 500/- Maximum INR. 1,50,000/- in a financial year. Deposits can be made in lump-sum or in ​installments.

Post Office Provident Fund Account(PPF) Maturity rules:

  • Account will mature after 15 F.Y. years excluding FY of account opening. 
    On maturity depositor has the following options:-
  • Can take maturity payment by submitting account closure form along with passbook at concerned Post Office 
  • Can retain maturity value in his/her account further without deposit, the PPF interest rate will be applicable and payment can be taken any time or can take 1 withdrawal in each FY.
  • Can extend his/her account for a further block of 5 years and so on (within one year of maturity) by submitting a prescribed extension form at the concerned Post Office.

Post Office Public Provident Fund Account(PPF) premature closure rules

Premature closure shall be allowed after 5 years from the end of the year in which the account was opened subject to the following conditions. 

  • In case of life-threatening disease of the account holder, spouse, or dependent children.
  • In case of higher education of account holders or dependent children.
  • In case of a change of resident status of the account holder ( i.e. became NRI).

At the time of premature closure, 1% interest shall be deducted from the date of account opening/date of extension as the case may be. 

The account can be closed on the above conditions by submitting the prescribed form along with the passbook at the concerned Post Office. 

Post Office Public Provident Fund Account(PPF) rules in case of death

Post Office Public Provident Fund Account(PPF) rules in case of death:

  • In case of the death of the account holder, the account shall be closed and the nominee or legal heir(s) shall not be allowed to continue deposits in the account. 
  • At the time of closure due to death PPF rate of interest shall be paid till the end of the preceding month in which the account is closed.

Post Office Sukanya Samriddhi Account(SSA)

Post Office Sukanya Samriddhi Account(SSA) is a good choice for a girl child. Post Office Sukanya Samriddhi Account(SSA) is an initiative by Govt of India to encourage parents to save for their Girl child’s education and marriage. It offers higher interest rates as compared to other investment options.

Post Office Sukanya Samriddhi Account(SSA) eligibility criteria

Post Office Sukanya Samriddhi Account(SSA) eligibility criteria:

  • By the guardian in the name of a girl child below the age of 10 years.
  • Only one account can be opened in India either in Post Office or in any bank in the name of a girl child.
  • This account can be opened for a maximum of two girls in a family. Provided in case of twins/triplets girls birth more than two accounts can be opened.

Post Office Sukanya Samriddhi Account(SSA) features

As of 2023:

  • Interest rate – The rate of interest is 7.6​​% Per Annum(with effect from 01-04-2020 ), calculated on yearly basis, Yearly compounded.
  • Minimum and Maximum investment amount – Minimum INR. 25​0/-and Maximum INR. 1,50,000/- in a financial year. Subsequent deposits in multiples of INR 50/- Deposits can be made in lump-sum No limit on the number of deposits either in a month or in a Financial year

Post Office Sukanya Samriddhi Account(SSA) withdrawal rules

Post Office Sukanya Samriddhi Account(SSA) withdrawal rules:

  • Withdrawal may be taken from the account after the girl child attains the age of 18 or passed the 10th standard. 
  • withdrawal may be taken up to 50% of the balance available at the end of the preceding F.Y. 
  • withdrawal may be made in one lump sum or in installments, not exceeding one per year, for a maximum of five years, subject to the ceiling specified and subject to the actual requirement of fee/other charges.

Post Office Sukanya Samriddhi Account(SSA) premature closure rules

  • Account may be prematurely closed after 5 years of account opening on the following conditions
  • On the death of the account holder. (from date of death to date of payment PO Savings Account interest rate will be applicable).
  • On extremely compassionate grounds
  • Life-threatening disease of the account holder
  • death of the guardian by whom the account is created

Post Office National Savings Certificates(NSC)

Post Office National Savings Certificates(NSC) are a good choice for investors who are looking for a safe secure returns. This is one of the most popular post office schemes amongst middle-class investors.

Post Office National Savings Certificates(NSC) eligibility criteria

Post Office National Savings Certificates(NSC) eligibility criteria:

  • a single adult 
  • Joint Account (up to 3 adults) 
  • a guardian on behalf of a minor or on behalf of a person of unsound mind 
  • a minor above 10 years in his own name.

Post Office National Savings Certificates(NSC) features

As of 2023:

  • Interest rate – 7.0 % compounded annually but payable at maturity.
  • Minimum and maximum investment amount – Minimum of Rs. 1000/- and in multiples of Rs. 100/- No Maximum Limit

Post Office National Savings Certificates(NSC) premature closure

NSC may not be prematurely closed before 5 years except for the following conditions:

  • On the death of a single account, or any or all the account holders in a joint account 
  • On forfeiture by a pledgee being a Gazetted officer. 
  • On order by a court.

Post Office Kisan Vikas Patra(KVP)

Post Office Kisan Vikas Patra(KVP) was originally created for Indian farmers but looking at its popularity the Govt of India has extended the scheme to all Indian citizens who meet the eligibility criteria.

Post Office Kisan Vikas Patra(KVP) eligibility criteria

Post Office Kisan Vikas Patra(KVP) eligibility criteria:

  • a single adult 
  • Joint Account (up to 3 adults) 
  • a guardian on behalf of a minor or on behalf of a person of unsound mind 
  • a minor above 10 years in his own name.

Post Office Kisan Vikas Patra(KVP) features

As of 2023:

  • Interest rate– 7.2 % compounded annually
  • Minimum and maximum investment amount – Minimum of Rs. 1000/- and in multiples of Rs. 100/- No Maximum Limit.

Post Office Kisan Vikas Patra(KVP) premature closure rules

KVP may be prematurely closed at any time before maturity subject to the following conditions:

  • On the death of a single account, or any or all the account holders in a joint account 
  • On forfeiture by a pledgee being a Gazette officer. 
  • When ordered by the court. 
  • After 2 years and 6 months from the date of deposit.

Advantages of Post Office Schemes

There are several advantages to investing in post office schemes in India:

  1. Safety: Post office schemes are backed by the Government of India, so they are considered to be low-risk investments.
  2. High returns: Many post office schemes offer higher returns compared to bank fixed deposits and other similar investment instruments.
  3. Wide availability: Post office schemes are available in almost every part of the country, making them easily accessible to investors.
  4. Ease of purchase: Post office schemes can be purchased through a variety of channels, including post offices, banks, and online platforms.
  5. Flexibility: Most post office schemes offer flexible investment options, allowing investors to choose the scheme that best suits their needs.
  6. Tax benefits: Some post office schemes offer tax benefits to investors under the Income Tax Act.

Disadvantages of post office schemes

There are a few disadvantages to investing in post office schemes in India:

  1. Low liquidity: Many post office schemes have a fixed maturity period, which means that investors may not be able to withdraw their money before the scheme matures. This can be a problem in case of an emergency or if the investor needs the money for some other reason.
  2. Limited investment options: The range of investment options available in post office schemes is relatively limited compared to other investment instruments.
  3. Low returns: The returns on post office schemes may be lower compared to other investment instruments, such as mutual funds or stocks.
  4. Inflation risk: The returns on post office schemes may not keep pace with inflation, which means that the purchasing power of the invested money may decline over time.
  5. Dependence on the government: The returns on post office schemes are dependent on the financial stability and performance of the Government of India. If the government is facing financial difficulties, it may impact the returns on post office schemes.

FAQs on Post office Scheme

  1. Which scheme is best in the post office?

    PPF and Sukanya Samriddhi Account Scheme​​ are the best post office scheme considering they give the highest interest rates.

  2. How many years FD will double in the post office scheme?

    It will take more than 10 years to double your money in post office fixed deposits.

  3. Which is better Bank FD or Post Office FD?

    Although post office fixed deposits offer slightly better interest rates than normal banks if you consider the ease of doing business and access to your money you will find bank FDs are better than post office FDs.

  4. Is Post Office MIS good?

    Yes, post office MIS is good considering it offers good interest for your monthly income.

  5. Is Monthly Income Scheme in Post Office taxable?

    Yes, Monthly Income Scheme in Post Office is taxable. The gains from the Monthly Income Scheme in Post Office will be added to your total income for tax calculation purposes.

  6. What is the post office FD interest rate in 2021

    The 5 year FD in post office has 6.7% interest rate.

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