Latest Interest Rates of Post Office Small Saving Schemes – April to June-2019

Latest Interest Rates of Post Office Small Saving Schemes – April to June-2019 ReviewLatest Interest Rates of Post Office Small Saving Schemes – April to June-2019


Yesterday, Ministry of Finance Tweeted news about latest interest rates on post office small saving schemes applicable for the period April to June-2019 (1st Quarter of FY2019-2020). Recently, many banks have started increasing FD rates. This trend has given an indication, that interest rates may be going up in the future. Ministry of Finance has tweeted, saying no change in latest interest rates of post office saving schemes. What are the latest interest rates on post office small saving schemes for April to June 2019? 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 7 quarters?

Also Read: Top 10 Mutual Funds to invest from Largecap segment

About announcement of Latest Interest Rates of Post Office Small Saving Schemes for the period April to June-2019


Many experts were expecting an increase in new interest rates of post office saving schemes. However, Ministry of Finance Tweet indicated no change in interest rates now. This is some bad news to investors who were thinking that interest rates would increase in coming quarters.

Tweet of Latest Interest Rates of Post Office Small Saving Schemes – April to June-2019

Small Saving Schemes can be now invested through many banks like ICICI Bank, HDFC and Axis Banks.

Latest Interest Rates of Post Office Small Saving Schemes – April to June-2019


Here is the quick snapshot about the latest and revised interest rates, which is applicable from April to June 2019.

1) Post office small saving schemes are considered secured as these are offered by the Ministry of Finance (Govt of India). Higher interest rates are being offered on Sr. Citizens Saving Scheme, which is 8.7%.

2) Time deposit from Post Office offers 7% to 7.8% per annum for 1 to 5 years tenure FDs. Since these FD rates are compounded quarterly, the effective annual interest rates are 7.1% to 8.03% per annum. Currently, banks are offering FD rates, which are between 6% to 7.2% per annum only. Hence Term Deposits / Fixed Deposits from Post office small saving schemes are best, compared to bank fixed deposit schemes.

4) Currently there are several NCDs being offered by the corporates where your money can get doubled in 7-9 years time frame. Currently Muthoot HomeFin NCD 2019 opens for subscription. Such NCD offers high interest rates where your money would get doubled in 7.5 years itself. However, these are high risk. Investment in Post Office Kisan Vikas Patra (KVP) would be doubled on 112 months as per new interest rates of Post office schemes. If you want to double your money in banks, you need to deposit for at least over 125 months. KVP is secured compared to NCDs and offers high interest rates compared to banks.

5) The Post Office Small Saving Scheme 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. Alternatively, if can take some risk, you can invest in some of the monthly income plan (MIP) mutual funds that can provide 8% to 10% annualized returns.

6) There are several mutual funds to save money for the kids. However, one unique scheme for girl child is Sukanya Samriddhi Account. You can invest your money in Sukanya Samriddhi Account Scheme for your girl child which offers  8.5% interest rates. The maturity amount is tax free. This is still a good small saving investment scheme for April to June 2019 period.

7) If you and your spouse can plan well, you can become Crorepati by investing in PPF along with income tax benefit in 15-20 years time frame. Even if you are a conservative investor and planning to retire in next 10-15 years, 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 invest in some of the Best Mutual Fund SIPs or consider investing in recurring deposits. If you are a conservative investor, 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) There are several investment options to save tax u/s 80C. While ELSS Tax Saving Mutual Funds always score high in terms of returns and low lock-in period, it has some element of risk. For moderate to low risk investors, NSC is one of the best tax saving investment option that is offering 8% interest rates.

Latest and Revised Post Office Small Saving Interest rates – April to June-2019


Latest Interest Rates of Post Office Small Saving Schemes – April to June-2019

How is the trend looking for Small Saving Schemes Interest Rates in the last 8 Quarters?


Trend of Interest Rates of Post Office Small Saving Schemes – April -2017 to June-2019

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. You can become Crorepati with popular saving schemes like PPF if you can plan well. If you are a low risk taker, consider investing in small saving schemes offered by the post office.

If you enjoyed this article, share it with your friends and colleagues on  Facebook and Twitter.

Suresh

Latest Interest Rates on Post Office Small Saving Schemes – April to June-2019

The Author

Suresh KP

Suresh KP i.e. me have written 1,800+ articles on this blog. I love doing analysis on various Best Investment Plans like mutual funds, Stocks, IPO's, NCD Bonds, Insurance products. If you like our blog, you can share some of the good articles on your Facebook or Twitter. This would be the BIGGEST gift which you would be giving to us.

Leave a Reply

Your email address will not be published. Required fields are marked *