Latest and Revised Post Office Small Saving Interest rates – Oct to Dec-2018

review-of-Revised-and-Latest-Post-Office-Small-Saving-Schemes-Interest-Rates-Oct-to-Dec-18Latest Post Office Small Saving Interest rates – Oct to Dec-2018


Yesterday, Ministry of Finance announced revised interest rates for post office small saving schemes applicable for the period October to December-2018 (3rd Quarter of FY2018-2019). Recently, some of the banks have started increasing FD rates. This trend has given an indication, that interest rates may be going up in the future. As expected, Ministry of Finance has increased the interest rates for post office saving schemes. Some of the interest rates are increased by 0.4%. What is the latest post office small saving schemes interest rates in October to December 2018? Which is the post office small saving schemes offering highest interest rates compared to bank FD’s or other saving schemes? How is the post office interest rates trend looking in the last 6 quarters?

Also Read: Best Mutual Funds to invest during declining rupee and strong dollar

Latest and Revised Post Office Small Saving Interest rates – Oct to Dec-2018


There is good %age of hike in interest rates now. This is a good news to investors who are investing in small saving schemes. Small Saving Schemes can be now purchased through many banks like ICICI Bank, HDFC and Axis Banks.

Latest and Revised Post Office Small Saving Interest rates – Oct to Dec-2018


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

1) Among the post office small saving schemes, highest interest rates are being offered on Sr. Citizens Saving Scheme, which is 8.7%.

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 6.9% to 7.8% per annum from 1 to 5 years tenure. After compounding, the term deposits give a yield of 6.9% to 8% per annum. Currently, some banks are offering FD rates, which are between 6% to 7.2% 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 112 months as per latest interest rates. Till last quarter, the time taken to double your money under KVP was 115 months. If you want to double your money in banks, you need to deposit for at least over 125 months. KVP is still beneficial compared to bank FD schemes.

5) The Post Office Monthly Income Account (earlier called as MIS) offers 7.7% 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  8.5% interest rates. The maturity amount is tax free. This is still a good small saving investment scheme for Oct to Dec 2018 quarter.

7) If you want to invest your money for child education or for their marriage, you can consider investing in Public Provident Fund (PPF) which offers 8% interest. While the tenure of PPF is for 15 years, it offers safe 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 7.3% annualized yield. You can invest Rs 1,000 per month in a post office RD scheme for 5 years. You can invest a 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 that is offering 8% interest rates. Otherwise, you can invest in best ELSS tax saving funds.

Latest and Revised Post Office Small Saving Interest rates – Oct to Dec-2018


Revised and Latest Post Office Small Saving Schemes Interest Rates Oct to Dec-18

How is the trend looking for Small Saving Schemes Interest Rates in the last 6 Quarters?


Trend of Post Office Small Saving Schemes Interest Rates Oct to Dec-18
Link: GOI Ministry of Finance notification letter.

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

Latest and Revised Post Office Small Saving Interest rates – Oct to Dec-2018

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