Latest Post Office Interest Rates – April to June-2020

Post Office Small Saving Scheme interest Rates – April, May and Jun 2020

Latest Post Office Interest Rates – April to June-2020


Ministry of Finance (MoF) has announced latest and revised post office interest rates on small saving schemes for the period April-20 to June-2020 few minutes back. As expected, MoF has reduced interest rates of the small saving schemes, but at a very huge reduction of up to 1.4%. Post office schemes are considered as one of the safest investments as are governed and guaranteed by Govt of India. What is the latest and new Post Office Interest Rates table applicable for April, May and June, 2020?  Does new postal small saving scheme rates offer the highest returns compared to bank FDs and other fixed income investment options?

Also Read: Best Investment Plans to get regular monthly Income

What are the changes in Post office interest rates for April to June-2020?


Ministry of finance in their letter dated 31st March, 2020 vide notification F. No.1/4/2019-NS has indicated that new Post office interest rates for April-20, May-20 and June-20 has been reduced compared to the previous quarter. Here is the Ministry of Finance notification regarding this.

MoF Notification on Small Saving Scheme Interest Rates

Latest Post Office Interest Rates – April, May and June-2020


Here is the latest and new post office interest rate table applicable for April to June 2020 period.  If you observe, for all Post office schemes there is huge reduction in interest rates up to 1.4% compared to the previous quarter rates.

Latest and Revised Post Office Interest Rates April-May-June-2020

Latest and New Post Office Interest Rates April-May-June-2020

Trend of Post Office Interest Rates of April to June-2020


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

Post Office Interest Rates Trand - July 2018 to June 2020

Post Office Interest Rates Trend – July 2018 to current Qtr (April-June 2020

Latest and New Post Office Interest Rates – April to June-2020 and their Features


Now let review the post office new interest rates in detail.

1) Post Office Savings Interest rates 2020 now is 4%


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 a 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 2020 is now at 4% per annum. Such savings interest rate is comparable with savings account 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.

Luckily Ministry of finance has not reduced any interest rate on Postal SB account.

2) Post Office FD Interest rates 2020- 5.5% to 6.7%


Post office small saving schemes offers FDs too. Here are the details of the Post Office Fixed deposit.

You can open Post office FD 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 FD Interest rates for 1 year, 2 years and 3 years is 5.5%. This interest would be compounded every quarter.

Post office FD rate for 5 years tenure is 6.7%. 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.

Ministry of finance has reduced interest rate on Post Office FD by 1.4% compared to previous quarter making it as unattractive now.

3) Post office RD Interest rate 2020 – 5.8%


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 2020 now is 5.8% 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.

Ministry of finance has reduced Post Office RD interest rate 2020 now by 1.4% compared to previous quarter making it as unattractive scheme now.

4) Post office NSC Interest Rate in 2020 now – 6.8% (VIII issue)


NSC is available for 5 years tenure.

The Post office NSC interest rate is 6.8%. The 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 on the NSC investment. Such amount would quality for income tax deduction u/s 80c upto Rs 1.5 Lakhs during the financial year.

Ministry of finance has reduced interest rate on NSC by 1.1% compared to previous quarter.

5) Kisan Vikas Patra Small Saving Scheme – 6.9% Interest


Many call KVP as Post Office Fixed Deposit Double saving scheme.

Kisan Vikas Patra (KV) is one of the best post office saving schemes, where your money would be doubled.

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

The KVP interest rate is 6.9%. The interest is compounded annually and payable on maturity.

KVP doubles your money in 124 months. Last quarter your money used to get doubled in 113 months. Now you need to wait for 9 months more.

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

Ministry of finance has reduced NSC interest rate by 0.7% compared to previous quarter making it as unattractive now.

6) Post Office MIS Interest Rate 2020 now is 6.6% 


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 in a single account and Rs 9 Lakhs for the joint account.

Post Office MIS interest rate 2020 now is 6.6%. 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 in the 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.

Ministry of finance has reduced interest rate on MIS Post Office interest rate in 2020 now by 1% compared to previous quarter.

7) Sukanya Samriddhi Account – 7.6% Interest Rate


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

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

A legal of natural Guardian can open the 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 a minimum amount required for deposit for that year.

Partial withdrawal, maximum up to 50% of the 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.

Ministry of finance has reduced interest rate on the Postal Sukanya Account by 0.8% compared to the previous quarter.

8) SCSS Interest Rate (5 Years Senior Citizens) – 7.4%


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

Senior Citizens Saving Scheme (SCSS) interest rate is 7.4% 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 have 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.

The 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.

Ministry of finance has reduced SCSS interest rate by almost 1.2% compared to previous quarter making it as unattractive now.

Also Read: LIC HFL Fixed Deposit – Should you invest?

9) Public Provident Fund Offers 7.1% Interest


Public Provident Fund (PPF) is one of the best savings schemes who want to accumulate wealth in the long term.

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.

The PPF interest rate is 7.1%. The interest is compounded annually and payable on maturity.

Interest received in PPF is tax free.

The 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.

MoF has reduced interest rate on PPF by 0.8% compared to the previous quarter.

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Suresh KP

Latest and New Post Office Interest Rates – April to June-2020

13 comments

  • Sanjay Mehta

    I will be retire in 31st October 2020 so Kindly update me with safe investment after retirement to get good returns

  • Sanjeev

    Hi Suresh K P,

    I want to invest money approx. 10 lakhs as an FD, which will be better bank or post office ? How can check interest rates? I dont want to go for private bank or organization.

    Thanks in advance!

    Sanjeev

    • Hello Sanjeev, Post office interest rates are now lowest compared to banks. Since you do not want to go to private banks, you can invest in nationalised FD schemes. The issue is that there is not latest FD interest rates at one table. I keep publishing this on regular basis. I would publish one for next week where you can check only particularly nationalised bank FD rates and invest.

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