Post office savings schemes – Complete guide

Post office small saving schemes IndiaPost office saving schemes revised interest rates from 1-Apr-2014

Last week, Finance Ministry has revised the interest rates on post office saving schemes in India. These revised interest rates on post office schemes would come into effect from 1st April, 2014. The rate hike decision is in line with the recommendation given by Shyamala Gopinath committee, which they felt that such hike in rates for small saving schemes will make these schemes more attractive and sync with market rates. Here is the quick summary of what has changed along with details of other saving schemes too.

Also Read: Complete guide on post office saving schemes in India

Revised rates for post office schemes from Apr-2014

1) Rates are revised for recurring deposits and term deposits only.

2) Recurring deposit rates for a 5 year deposit hike from 8.3% to 8.4% per annum.

3) For 1 and 2 year term deposit, interest is hiked from 8.2% to 8.4% per annum

4) For the 3 year term deposit, interest rate revised from 8.3% to 8.4%

5) For a 5 year term deposit, rates are revised from 8.4% to 8.5% per annum

Net summary is the rates are hiked only for recurring deposits and term deposits (fixed deposits). There is no change in interest rates for other schemes.

Complete summary of schemes with the old rate and revised rate (effective from 1st April, 2014)

Post office saving schemes revised interest rates from 1-Apr-2014

Conclusion: Recurring and fixed deposits offered by Post office offers good interest rates, which are more or less in line with bank rates. Yes, some private banks offer high interest rates, however looking at the safety offered by the post office, these post office small saving schemes are definitely attractive.

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Post office saving schemes revised interest rates from 1-Apr-2014

There are 7 comments left Go To Comment

  1. vishnu /

    how to change nominees in NSC of post

    1. Suresh KP / Post Author

      Vishnu, You can fill below form and sign and give it to post office where you have purchased NSC. They would change nominee of the NSC.

  2. RAMU /

    I want to do fixed deposit in post office but I want to know how much cen deposit each person with out tax ? and tell me about sequrity.
    Ex: if I deposit the 50 Lacks for 10 years , how much interest will I receive per month.

  3. pradeep /

    From.01 jun 2015 tax will be imposed on interest earned on rd. Every month I invested 6000 starting from 06 jun 2010. So as per next tax plan I have to pay tax on interest amount due just matter of 6 days. How much interest will I pay for that. Can I close my rd account before 01 jun 15 to save some extra amount avoid as tax?

  4. SURESHV /

    nice analysis

  5. Vignesh /

    Hi Suresh,

    Due to Lack on Technology and Online Services, still the post office savings are not easily feasible for the middle class people. For any transaction / Opening / Closure / Cancellation / Scrutiny, we have to visit the branch. I am also a subscriber of these financial services and had faced many problems while opting for it. It is useful for those who are frequent travellers who walk miles daily. Else, we will get stressed out easily due to their behaviour and way of handling the services.

    Also, the interest rates are not so attractive as a Bank Fixed deposit.


    Vignesh. S

    1. E.S. Jumanji /

      Agreed! govt sectors are now an epitome of obsoleteness and rigid inability and desire to incorporate modern banking….

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