Latest Post Office Interest Rates – Oct-2019 to Dec-2019

Post Office Interest Rates Jan-18 to Dec-2019 ReviewLatest Post Office Interest Rates – Oct-2019 to Dec-2019


Ministry of Finance has published latest interest rates on post office, saving schemes applicable for the period October to December, 2019 (3rd  Quarter of FY2019-20) now. Last month, RBI had cut the Repo rate for the 4th  consecutive time and banks started reducing the FD interest rates. This trend has given an indication, that interest rates would go down for small saving schemes too. What are the latest interest rates on post office small saving schemes for October to December 2019? What are the highlights of Post Office Interest Rates that are published now? How is the post office interest rate trend looking in the last 8 quarters?

Also Read: 10 Best High Return Investment Plans in India

About MoF notification on Latest Interest Rates of Post Office – October to December-2019


Based on the RBI repo rate cut, many experts were expecting a reduction in interest rates of post office saving schemes. However, surprisingly, Ministry of Finance (MoF) has not reduced the interest rates means, no change in interest rates compared to the previous quarter.

Here is the notification from Govt of India about post office small saving scheme interest rates

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

Highlights of Post Office Interest Rates for October to December-2019


Here are some of the highlights about post office interest rates.

1) Post office small saving schemes are considered as highest safety as these are offered Govt of India (through the Ministry of Finance). Higher interest rates are being offered on Sr. Citizens Saving Scheme, which is 8.6%. If you are a senior citizen and looking for safe income, investing in Sr. Citizen Saving Scheme could be the best bet.

2) Post Office Time deposit (Nothing but FDs) offers 6.9% to 7.7% per annum from 1 to 5 year period. Since these FD rates are compounded quarterly, the effective annual interest rates are 7% to 8% per annum. Currently, banks are offering FD rates, which are between 5.5% to 7% per annum only. Hence Term Deposits from Post office small saving schemes are good compared to bank fixed deposit schemes.

4) There are several NCDs being offered by the corporates where your money can get doubled in 7-9 years time frame. However, these are high risk. Investment in Post Office Kisan Vikas Patra (KVP) would be doubled in 113 months as per new interest rates of Small Saving Schemes. If you want to double your money in banks, you need to deposit for at least over 125 months. Investment in KVP is secured compared to NCDs and offers high interest rates compared to bank FDs.

5) The Post Office Small Saving Scheme Monthly Income Account (earlier called as MIS) offers 7.6% per annum interest rates, which is payable every month. If you are a Senior Citizen or looking for safe fixed income,  investing in post office monthly income account is one of the best options. Alternatively, if can take some risk, you can invest in some of the balanced mutual funds with a dividend option that can provide regular income, though not guaranteed.  

6) There are several children’s mutual funds schemes to save money for your children. However, Sukanya Samriddhi Account (SSA) is one unique saving scheme for the girl child. You can invest your money in Sukanya Samriddhi Scheme for your girl child when the girl child is under 9 years. SSA offers  8.4% interest rates. The maturity amount is tax free. This is still a best small saving investment scheme for October to December, 2019 period when banks are offering low interest rates.

7) Public Provident Fund offers interest rate of 7.9%. Do you know that if you and your spouse can plan well, you can become Crorepati by investing in PPF for 15-20 years time frame and additionally you would get 80c income tax benefit. PPF is considered as a good retirement option as it provides stable returns along with safety in your investment.

8) If you are planning to save money every month, you can consider investing in post office recurring deposit that offers up to 7.2% interest rates. These are still higher compared to bank RDs that are offering low returns. 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) NSC is considered as one of the safest investment options to save income tax u/s 80C that can give 7.9% interest rate per annum. This is for a low risk investor who does not want to invest in Tax Saving Mutual Fund schemes that are risky.

Here is the Post Office Interest Rate table for October to December 2019


How is the trend of Post Office Interest Rates in the last 8 Quarters?


Conclusion: Post Office Small saving schemes, offer the highest interest rates compared to bank FD schemes. Some of the unique 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 KP

Latest Post Office Interest Rates – Oct-2019 to Dec-2019

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