Post Office Schemes Latest Interest Rates Table, Benefits and Returns Calculator
Post office schemes are a popular investment option in India, offering individuals a safe and reliable way to earn interest on their investments. These schemes are backed by the government, making them a low-risk investment option for those looking for a secure investment.
In this article, we’ll take a closer look at post office schemes and explore the different options available, and the latest Post Office Interest Rates table along with their respective features, benefits, and drawbacks.
Consider reading: Latest Small Savings Interest Rates
Page Contents
Latest Post Office Scheme Interest Rates Table in 2023
| Instruments | Rate of interest from 01.10.2023 to 31.12.2023 | Compounding Frequency |
|---|---|---|
| Post Office Savings Account | 4.0 % | Annually |
| 1-Year Time Deposit | 6.9 % | Quarterly |
| 2-Year Time Deposit | 7.0 % | Quarterly |
| 3-Year Time Deposit | 7.0 % | Quarterly |
| 5-Year Time Deposit | 7.5 % | Quarterly |
| 5 Year Recurring Deposit Scheme | 6.5 % | Quarterly |
| Senior Citizen Savings Scheme | 8.2 % | Quarterly and Paid |
| Monthly Income Account | 7.4 % | Monthly and paid |
| National Savings Certificate (VIII Issue) | 7.7 % | Annually |
| Public Provident Fund Scheme | 7.1 % | Annually |
| Kisan Vikas Patra | 7.5 % | Annually |
| Mahila Samman Savings Certificate | 7.5 % | Quarterly |
| Sukanya Samriddhi Account Scheme | 8.0 | Annually |
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:
- Post Office Savings Account(SB)
- Post Office National Savings Recurring Deposit Account(RD)
- Post Office National Savings Time Deposit Account(TD) / Post Office fixed deposits
- Post Office National Savings Monthly Income Account(MIS)
- Post Office Senior Citizens Savings Scheme Account(SCSS)
- Post Office Public Provident Fund Account(PPF)
- Post Office Sukanya Samriddhi Account(SSA)
- Post Office National Savings Certificates(NSC)
- Post Office Kisan Vikas Patra(KVP)
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:
- 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:
- Latest Post Office RD Interest rate: 6.2 % 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 instalments 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 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 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 an 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 Post Office Senior Citizens Savings Scheme Account has an Interest rate of 8.2 % 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.
Consider reading: Post Office Senior Citizens Savings Scheme Account Complete Details
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, the 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 the 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, the PPF rate of interest shall be paid till the end of the preceding month in which the account is closed.
Consider reading: Post Office PPF Interest Rates and Details
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:
- Post Office Sukanya Samriddhi Account Interest rate: The rate of interest is 8.0 % Per Annum(with effect from 01-04-2020 ), calculated on a yearly basis, Yearly compounded.
- Minimum and Maximum investment amount: Minimum INR. 250/-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
- A life-threatening disease of the account holder
- death of the guardian by whom the account is created
Consider reading: Post Office Sukanya Samriddhi Account Latest Interest Rates and Details
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 return. 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:
- Post Office National Savings Certificates Interest rate: 7.7 % 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.
Consider reading: National Savings Certificate Latest Interest Rates and Details
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:
- Post Office Kisan Vikas Patra(KVP) Interest rate: 7.5 % 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.
Consider reading: Kisan Vikas Patra Latest Interest Rates and Details
Advantages of Post Office Schemes
There are several advantages to investing in post office schemes in India:
- Safety: Post office schemes are backed by the Government of India, so they are considered to be low-risk investments.
- High returns: Many post office schemes offer higher returns compared to bank fixed deposits and other similar investment instruments.
- Wide availability: Post office schemes are available in almost every part of the country, making them easily accessible to investors.
- Ease of purchase: Post office schemes can be purchased through a variety of channels, including post offices, banks, and online platforms.
- Flexibility: Most post office schemes offer flexible investment options, allowing investors to choose the scheme that best suits their needs.
- 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:
- 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.
- Limited investment options: The range of investment options available in post office schemes is relatively limited compared to other investment instruments.
- Low returns: The returns on post office schemes may be lower compared to other investment instruments, such as mutual funds or stocks.
- 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.
- 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.
Final Thoughts on Post Office Schemes and Interest Rate Table in 2023
In conclusion, post office schemes are a reliable and low-risk investment option that can help you grow your wealth over the long term.
Our Post Office interest rates table has given you details of the latest interest rates offered by each of the post office schemes.
From fixed deposits and recurring deposits to savings accounts and public provident funds, post office schemes offer a wide range of options that are backed by the government and offer attractive returns.
By taking the time to understand the features, benefits, and drawbacks of each scheme, you can make informed investment decisions that align with your financial goals and help you achieve financial security.
FAQs on the Post Office Scheme and Interest Rate Table in 2023
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.
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.
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.
Is Post Office MIS good?
Yes, post office MIS is good considering it offers good interest for your monthly income.
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.
What is the 10 lakh scheme in the post office?
The 10 lakh scheme in the post office is called the Post Office Kisan Vikas Patra. By investing Rs. 10 lakh, you can receive Rs. 20 lakh at maturity after 115 months. This government program offers compound interest rates.
What is the 15 lakh scheme in the post office?
The 15 lakh scheme in the post office refers to the Monthly Income Scheme (MIS) account. Finance Minister Nirmala Sitharaman declared in her Budget Speech 2023 that the deposit limit for a single account under this scheme will be increased from Rs 4.5 lakh to Rs 9 lakh, and to Rs 15 lakh for a joint account. This announcement aims to provide higher returns to post office investors.
