Post Office Small Saving Schemes Interest rates for Apr to Jun-2017
Couple of days back, the Ministry of Finance announced latest and revised interest rates for post office saving schemes applicable for the period April-2017 to June-2017 (1st Quarter). For the past 4 quarters, Ministry of Finance is reducing interest rates gradually. In current quarter to April-17 to June-17, every one was expecting that small saving schemes interest rates would fall in line with bank rates. What are the latest post office interest rates for April-2017 to June-2017? Which are the post office small saving schemes offer highest interest rates compared to bank FD’s or other saving schemes?
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Post Office Small Saving Schemes Interest rates for April-2017 to June-2017
Here is the quick snapshot about the latest interest rates announced now.
1) Reduction of 0.1% or 10 basis points (bps) on all post office small saving schemes except for savings bank account rate.
2) Among the post office saving schemes, highest interest rates is being offered on Sukanya Samriddhi Account Scheme and Senior Citizens Saving Scheme at 8.4% per annum.
3) With compounding of interest rates by a quarter, term deposits and recurring deposits offer high interest rates per annum.
4) Post office term deposit offers 7.08% to 7.93% per annum from 1 to 5 years tenure after quarterly compounding. Currently many banks are offering around 5.5% to 7.5% per annum only. Hence Post office Term deposits are best compared to bank fixed deposit schemes.
5) Investment in KVP is doubled after 113 months. If you want to double your money, you need to deposit for at least 120 months or higher in the bank. Kisan Vikas Patra is beneficial compared to bank FD schemes.
6) The Post Office MIS Scheme offers 7.6% per annum interest rates, which is payable every month. If you are a retired person, investing in post office monthly income scheme (POMIS) is one of the best way to get safe monthly income.
7) If you want to save money for your girl child and get higher returns, you can invest your money in Sukanya Samriddhi Account Scheme which offers 8.4% interest rates. The maturity amount is tax free.
8) If you want to invest your money for child education or for daughter marriage, you can consider investing in Public Provident Fund (PPF) which offers 7.9% interest. While the tenure is for 15 years, it offers highest tax free returns along with tax benefits u/s 80C.
9) If you are planning to save money every month, you can consider post office recurring deposit which offers up to 7.4% annualized returns. You can invest Rs 1,000 per month in post office RD scheme for 5 years. Your investment amount would be Rs 60,000 (1,000 x 60 months) and the maturity amount would be Rs 72,500. You can invest minimum of Rs 10 and in multiples of RS 10 there-off.
10) If you are a low risk taker and planning to invest money to save tax, NSC is one of the best option to invest.
Also Read: Top 10 High Return Investment Options to invest
Here are the Latest Post office Interest Rates for April-2017 to June-2017
Conclusion: Post office small saving schemes offer the highest returns compared other saving schemes and bank FD schemes. Some of the popular schemes like PPF and Sukanya Samriddhi Yojana Scheme offers highest interest rates. If you are a low risk taker, consider investing in small saving schemes offered by the post office.
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Suresh
Post Office Small Saving Schemes Interest rates for Apr to Jun-2017
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I m divorcee and get money from my husband… 5 lakh.. Wat should i do to increase my amount or where should i invest.which scheme vl b beneficial for me. Plz suggest me thanks
Hi Gangandeep, There are several options to invest. It depends on whether you want to grow the money or whether you want to get monthly income. As per your query, you indicated that you want to increase the amount. In such case you can opt to invest in balanced mutual funds. However they involve some risk. If you do not want to take risk, invest in Post office monthly income scheme (PO MIS) which can give you monthly returns.
Tnk u so much for ur precious suggestion…How can I invest in mutual funds..Wat is the procedure..And how it is risky…Is there any chances after june increase in rate of interest of mis ?Which will b the appropriate time to invest..And union bank rd is best or post office…Plz suggest me sir..
You need to open MF account with any MF Broker like icicidirect or fundsindia or any other broker. Then you can invest every month through SIP in particular mutual funds.
Can you please tell me what will be the combined rate of interest if I reinvest the generated interest from a MIS into a RD through a SB account in post office.
Hard to find this answer.
First time, i have gone through the details given on your site.
Very encouraging and useful for senior citizen investors.
Hope, to be regular visit to your site.
Thanks with best regards.
Thank you Arvind ji.
Would like to invest about 1 lakh Rs in NSC. Believe passbook is issued for same. Can one update the passbook every year at post office, to see how much interest has accrued that year? Thanks.
Whether the rates are for new deposits or applicable to old deposits also? I am a sr citizen and invested in Sr citizens savings scheme in 2015. What rate will be applicable to my deposits. Nice and informative article, keep it up dear Suresh ji.
Thank you Mishraji. For all post office schemes, you would get old rates for deposits made upto 31-Mar-17. For new deposits, the new rates would be applicable.