Latest Post Office Interest Rates – Jan to Mar-2020

Post Office Interest Rates Jan-Feb-March-2020Post Office Small Saving Scheme interest Rates – Jan – Feb – Mar 2020


Ministry of finance has announced latest post office interest rates on small saving schemes for the period Jan-20 to Mar-2020. As expected, MoF has not changed the interest rates of the small saving schemes. Post office schemes are considered as safest investment option as these are offered by Govt of India. What is the latest Post Office Interest Rates table applicable for Jan, Feb and March, 2020?  Does revised post office small saving scheme rates offer the highest returns compared to bank FDs and other fixed income investment options?

Also Read: Best Mutual Funds to invest in 2020

Are there any changes done in Post office interest rates for Jan to Mar-2020


Ministry of finance in their letter dated 31st December, 2019 vide notification F. No.1/4/2019-NS has indicated that Post office interest rates for Jan-20, Feb-20 and Mar-20 would remain unchanged compared to the previous quarter. Here is the Ministry of Finance notification regarding post office rates

Post Office Interest Rates Table for Jan, Feb and March 2020


Here is the latest post office interest rate table applicable for Jan to March 2020 period.  If you observe, postal interest rates are still better than many other banks.

Post Office Interest Rates table Jan-Feb-March-2020-min

Trend of Post Office Small Saving Scheme Interest Rates Jan to Mar-20


Here is the last 8 quarter interest rates trend which would give an idea to investors how these rates are moving.

Post office small saving schemes interest rates trend April 2018 to Mar-2020

Post office Small Saving Schemes – Features, Rules, Guidelines and Interest Rates in 2020


Now let review the post office schemes in detail.

1) Post Office Savings Account


Many of us not even aware that the post office offers a savings account like any other bank account. If you already have any post office schemes, you can open savings account and any interest of maturity proceeds of the small saving schemes would be credited to your savings account. Here are the features of the Post office savings account

You can open Post office savings account with Rs 500.

Post office savings interest rate is 4% per annum. Such savings interest rate is comparable with SB interest of banks.

Cheque book facility available if you can maintain Rs 500 minimum balance.

ATM facility available.

There are several other features like any other bank account.

2) Post Office Fixed Deposits


Post office small saving schemes offer fixed deposits too. Here are the details of Post Office Fixed deposit.

You can open Post office fixed deposit with a minimum of Rs 1,000 and in multiples of Rs 100.

There is no maximum FD limit.

Post office FDs are for 1 year, 2 years, 3 years and 5 year tenure.

Post office fixed deposit interest rates for 1 year, 2 years and 3 years is 6.9%. This interest would be compounded every quarter.

Post office FD rate for 5 years tenure is 7.7%. This FD scheme is eligible for income tax deduction u/s 80c upto Rs 1.5 Lakhs.

You can open Post office FD online by logging into internet banking of the post office portal.

Fixed Deposit interest rates in the post office are still high compared to the majority of the nationalized banks.

3) Post office Recurring Deposit account


Post office recurring deposit also called as National Savings Recurring Deposit is offered for the period of 5 years.

Post office RD can be opened as low as Rs 100 per month and in multiples of Rs 10 per month there on.

There is no maximum limit on Post Office RD.

Post office RD interest rate is 7.2% per annum. This interest would be compounded every quarter.

This RD account can be transferred from one post office to another.

There is a rebate on advance deposit of at least 6 installments.

If you invest Rs 1,000 per month for 5 years, the investment would be Rs 60,000 (1,000 x 60 months) and the maturity amount would be Rs 7,250.

4) Post office National Savings Certificate (NSC) – VIII issue


NSC is available for 5 years tenure.

NSC interest rate is 7.9%. Interest rate is compounded annually and payable on maturity.

You can invest a minimum of Rs 1,000 and in multiples of Rs 100 there-on. There is no maximum limit for investment. Such amount would quality for income tax deduction u/s 80c upto Rs 1.5 Lakhs during financial year.

If you invest Rs 1 Lakh in NSC, on maturity after 5 years, you would get Rs 1.46 Lakhs.

5) Kisan Vikas Patra Small Saving Scheme


Kisan Vikas Patra (KV) is one of the best post office saving scheme which would double your money.

You can invest a minimum of Rs 1,000 and in multiples of Rs 100 there-on. There is no maximum limit for investment.

KVP interest rate is 7.6%. The interest is compounded annually and payable on maturity.

KVP doubles your money in 113 months.

Certificate can be en-cashed after 2 & 1/2 years from the date of issue.

6) Post Office Monthly Income Scheme (POMIS) / Monthly Income account


Post office offers regular monthly income through this Post Office MIS scheme.

You can invest a minimum of Rs 1,000 and in multiples of Rs 100 there-on. You can invest a maximum of Rs 4.5 Lakhs for single account and Rs 9 Lakhs for joint account.

Post Office MIS interest rate is 7.6%. The interest is compounded annually and payable on maturity.

Maturity period is 5 years.

Post Office Monthly Income Plan interest can be drawn through auto credit into savings account standing at same post office, through PDCs or ECS. In case of MIS accounts standing at CBS Post offices, monthly interest can be credited into savings account standing at any CBS Post offices.

Premature withdrawal can be done after one year but before 3 years at the discount of 2% of the deposit rate and after 3 years at the discount of 1% of the deposit. Discount means deduction from the deposit.

POMIs is one of the best monthly income plan in India.

7) Sukanya Samriddhi Account – Saving Scheme for Girl Child


You can invest a minimum of Rs 250 and maximum of Rs 1.5 Lakhs in a financial year. Such amount would quality for income tax deduction u/s 80c.

Sukanya interest rate is 8.4%. The interest is compounded annually and payable on maturity.

A legal of natural Guardian can open account in the name of the Girl Child.

A guardian can open only one account in the name of one girl child and maximum two accounts in the name of two different Girl children.

One can open account up to age of 10 years from the date of birth.

If minimum Rs 25​0/- is not deposited in a financial year, account will become discontinued and can be revived with a penalty of Rs 50/- per year with minimum amount required for deposit for that year.

Partial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial year can be taken after Account holder’s attaining age of 18 years.

SSA can be closed after completion of 21 years.

Normal Premature closure will be allowed after completion of 18 years /provided that girl is married.

Online Deposit facility is available through Intra Operable Netbanking and IPPB Saving Account.

8) 5 Years Senior Citizens Saving Scheme


One of the high interest saving scheme for senior citizens is SCSS.

Any individual of the age of 60 years and above can open SCSS.

Senior Citizens Saving Scheme (SCSS) interest rate is 8.6% per annum.

One can deposit a minimum of Rs 1,000 and maximum of Rs 15 Lakhs.

An individual of the age of 55 years or more but less than 60 years who has retired on the superannuation or under VRS can also open account subject to the condition that the account is opened within one month of receipt of retirement benefits and amount should not exceed the amount of retirement benefits.

SCSS maturity period is 5 years.

Interest would be payable every quarter.

Premature withdrawal is allowed after 1 year, however, it would be to 1.5% lower interest rate & after 2 years it would be 1% lower deposit rate.

After maturity, the SCSS can be extended for a further 3 years within 1 year of the maturity by giving application in prescribed format. In such cases, the account can be closed at any time after expiry of one year of extension without any deduction.

9) Public Provident Fund


Public Provident Fund (PPF) is one of the best savings schemes who want to accumulate wealth in long term. If you can plan well, you can create 1 Crore with PPF.

You can invest a minimum of Rs 500 and maximum of Rs 1.5 Lakhs in a financial year. Such amount would quality for income tax deduction u/s 80c.

PPF interest rate is 7.9%. The interest is compounded annually and payable on maturity.

Interest received in PPF is tax free.

PPF maturity period is 15 years, but can be extended within one year of maturity for the further 5 years and so on.

Premature withdrawal is permissible every year from a 7th financial year from the year of opening account.

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Suresh KP

Post Office Small Saving Scheme interest Rates – Jan – Feb – Mar 2020

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