Ministry of finance (MoF) has now announced latest interest rates on small saving schemes of post offices that are applicable for October to December, 2020. MoF indicated that there is no change in interest rates for Oct to Dec 2020 compared to the previous quarter. What are the latest post office small savings scheme interest rates? Which post office saving scheme is offering highest interest rates?
About MoF notification on Small Saving Scheme interest rates in 2020
Here is the MoF, govt of India notification.
Latest Post Office Interest Rates in Oct to Dec-2020
Below are the latest interest rates applicable for small saving schemes.
1) Savings Account – 4.0%
2) Fixed Deposit (FD) – 1 year – 5.5%
3) Fixed Deposit (FD) – 2 years – 5.5%
4) Fixed Deposit (FD) – 3 years – 5.5%
5) Fixed Deposit (FD) – 5 years – 6.7%
6) Recurring Deposit – 5 Years – 5.8%
7) 5 Year Senior Citizen Savings Scheme – 7.4%
8) Monthly Income Account (Earlier MIS) – 6.6%
9) NSC – 5 years – 6.8%
10) PPF – 7.1%
11) KVP – 6.9%
12) Sukanya Samriddhi Yojana Account – 7.6%
Details of Small Saving Schemes
Here are more details about post office savings schemes.
1) Post Office SB A/c
One can open post office savings accounts with Rs 500. One can get cheque book facility if the minimum balance is maintained for Rs 500. ATM facility is also available. Current Post Office Savings account interest rate is 4% per annum.
2) Post Office Fixed Deposit Schemes
Many are not aware that the post office also offers fixed deposit schemes too. Investors can open Post office FD scheme as low as Rs 1,000 and with no maximum limit. These FDs are offered for 1 to 5 years period. Interest rates for 1 to 3 years period is 5.5% and for 5 years it is 6.7%.
3) Post office RD
Post office also offers recurring deposit for a 5 years tenure. One can open RD as low as Rs 100 and no maximum limit. The RD interest rate is 5.8% per annum.
4) National Savings Certificate (NSC)
National Savings Certificate (NSC) is issued for 5 year period. NSC interest rate is 6.8%. One can invest minimum of Rs 1,000 with no maximum limit. Investment in NSC up to Rs 1.5 Lakhs in a financial year would quality for income tax deduction u/s 80c.
5) Kisan Vikas Patra (KVP)
KVP – Kisan Vikas Patra doubles investors money in 124 months. Investors can invest minimum of Rs 1,000 and no maximum limit. Interest rate of KVP is 6.9% which is paid on maturity. KVP pre-mature withdrawal allowed after 2.5 years.
6) Post Office MIS (Monthly Income Scheme)
PO MIS scheme gives regular monthly income for 5 years period. One can invest minimum of Rs 1,000 and with maximum limit of Rs 4.5 lakhs (single account) and Rs 9 Lakhs (joint account). Post Office MIS Scheme rate is 6.6%.
7) Sukanya Samriddhi Yojana Account (YSSA)
Investors can invest minimum of Rs 250 and with maximum of Rs 1.5 Lakhs during financial year. Such invested amount is eligible for income tax deduction u/s 80c of IT Act. SSYA rate is 7.6% which is on maturity. Parents or guardians can open SSYA for girl child. They can open SSY A/c when child age is up to 10 years. Partial withdrawal for maximum of 50% of the investment done can be taken after Account holder’s attaining age of 18 years. SSYA can be closed at 21 years. One can also do normal premature closure of SSYA after completion of 18 years when girl gets married.
8) Senior Citizens Saving Scheme
One of the best scheme for senior citizens is SCSS. If an individual crossed 60 yars, they can opt for SCSS. SCSS interest rate is 7.4% per annumand it is payable every quarter One can do minimum investment of Rs 1,000 and maximum investment of Rs 15 Lakhs. The SCSS investment period is 5 years. SCSS premature withdrawal allowed after 1 year, but interest rate would be 1.5% less. If withdrawn after 2 years period, interest would be 1% lower rate. This SCSS scheme can be extended 3 more years within 1 year of the maturity.
9) Public Provident Fund (PPF)
One can do minimum investment of Rs 500 and maximum investment of Rs 1.5 Lakhs in PPF. This investment is eligible for income tax deduction u/s 80c of IT act upto Rs 1.5 Lakhs. PPF interest rate is 7.1%. Interest received in Public Provident Fund is tax free. PPF has maturity period of 15 years. One can extend for 5 more years, but it can be done within one year of maturity. One can do premature withdrawal from 7th year onwards after opening the account
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