India Post provides a slew of banking and remittance services. These include the nine small savings schemes - the 15-year Public Provident Fund, the Kisan Vikas Patra certificate scheme, the Sukanya Samriddhi scheme, the Senior Citizen Savings Scheme, four different types of fixed deposits etc. One can even open a savings account at a post office branch and operate it using an ATM card. Interest rates on these government-run small savings schemes are revised from time to time. For the quarter ending December 31, the interest rates are at 4-7.6 per cent.
Here are the current interest rates applicable to small savings schemes, effective till December 31, 2020:
1. Savings Account
Annual Interest Rate: 4%
Compounding Frequency: Annual
2. Time Deposit
The Post Office Time Deposit Account is available in four variations of maturity — also known as lock-in period.
One Year
Annual Interest Rate: 5.5%
Compounding Frequency: Quarterly
Two Years
Annual Interest Rate: 5.5%
Compounding Frequency: Quarterly
Three Years
Annual Interest Rate: 5.5%
Compounding Frequency: Quarterly
Five Years
Annual Interest Rate: 6.7%
Compounding Frequency: Quarterly
3. Five-Year Recurring Deposit
Annual Interest Rate: 5.8%
Compounding Frequency: Quarterly
4. Senior Citizen Savings Scheme (SCSS)
Annual Interest Rate: 7.4%
Compounding Frequency: Quarterly
Payment Frequency: Quarterly
5. Monthly Income Scheme (MIS)
Annual Interest Rate: 6.6%
Compounding Frequency: Monthly
Payment Frequency: Monthly
6. Kisan Vikas Patra (KVP)
Annual Interest Rate: 6.9% (matures in 124 months)
Compounding Frequency: Annual
7. Public Provident Fund
Annual Interest Rate: 7.1%
Compounding Frequency: Annual
8. Sukanya Samriddhi
Annual Interest Rate: 7.6
Compounding Frequency: Annual
9. National Savings Certificate (NSC)
Annual Interest Rate: 6.8%
Compounding Frequency: Annual
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