Revised Post Office Small Saving Schemes Interest rates for Jan to Mar-2018

Revised, Latest Post Office Small Saving Schemes Interest rates for Jan to Mar-2018Revised Post Office Small Saving Schemes Interest rates for Jan to March-2018


Yesterday night, Ministry of Finance announced latest and revised interest rates for post office saving schemes applicable for the period January-2018 to March-2018 (4th Quarter of FY2017-2018). This time there is no relief to investors who are depending on small saving schemes. While RBI has kept Repo rate same, for Small Saving Schemes, there is interest rate cut which was not expected. Some of the Small Saving Schemes interest rates are reduced by 0.2%. What are the latest post office interest rates for January 2018 to March 2018? Which are the post office schemes where there is no interest rate cut? 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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Revised Post Office Small Saving Schemes Interest rates for January to March-2018


Here are the changes done by Ministry of finance on Post office saving schemes for Jan to Mar 2018 period.

1) Time Deposits interest rates are reduced by 0.2% for 1, 2, 3 and 5 years tenure.

2) Recurring Deposits interest rates is reduced by 0.2%

3) National Savings Certificate (NSC) interest is reduced by 0.2%

4) Public Provident Fund (PPF) interest is reduced by 0.2%

5) Kisan Vikas Patra (KVP) interest is reduced by 0.2%

6) Sukanya Samriddhi Account interest rates reduced by 0.2%

7) Post Office Monthly Income Account (earlier MIS) interest rate is reduced by 0.2%.

There is no change in Interest rates for Sr. Citizens Saving Scheme and SB Account.

Revised Post Office Small Saving Schemes Interest rates for January to March-2018


Here is the quick snapshot about the latest and revised interest rates which is applicable from January to March, 2018.

1) Among the post office saving schemes, highest interest rates is being offered on Sr. Citizens Saving Scheme which is 8.3%. Earlier even Sukanya Samriddhi Account (SSA) Scheme too used to get highest interest among the small saving schemes. Now SSA offer only 8.1% interest rate for Jan to Mar 2018 quarter.

2) With compounding of interest rates by a quarter, time deposits and recurring deposits offer high interest rates per annum.

3) Post office time deposit offers 6.6% to 7.4% per annum from 1 to 5 years tenure. After compounding, the term deposits gives yield of 6.8% to 7.6% per annum. Currently many banks have reduced FD rates which are between 4.5% to 7.15% per annum only. Hence Post office Time deposits are best, compared to bank fixed deposit schemes.

4) Investment in Kisan Vikas Patra (KVP) would be doubled after 118 months as per latest interest rates. Till last Quarter, the time taken to double your money under KVP was only 115 months. If you want to double your money in banks, you need to deposit for at least 125+ months. KVP is still beneficial compared to bank FD schemes.

5) The Post Office Monthly Income Account (earlier called as MIS) offers 7.3% per annum interest rates, which is payable every month. If you are a retired person, investing in post office monthly income account (earlier called as MIS) is one of the best way to get safe monthly income.

6) 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  8.1% interest rates. The maturity amount is tax free.

7) If you want to invest your money for child education or for your daughter marriage, you can consider investing in Public Provident Fund (PPF) which offers 7.6% interest. While the tenure of PPF is for 15 years, it offers highest & Safest tax free returns along with tax benefits u/s 80C.

8) If you are planning to save money every month, you can consider post office recurring deposit which offers up to 6.9% annualized yield. You can invest Rs 1,000 per month in post office RD scheme for 5 years. You can invest minimum of Rs 10 and in multiples of RS 10 there-off.

9) If you are a low risk taker and planning to invest money to save tax,  NSC is one of the best option to invest.

Here are the Revised Post Office Small Saving Schemes Interest rates for Jan to March-2018


Conclusion: 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.

Revised Post Office Small Saving Schemes Interest rates for Jan to Mar-2018

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Suresh

Revised Post Office Small Saving Schemes Interest rates for Jan to Mar-2018

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