Latest Post Office interest Rates – Jul, Aug and Sep 2020
Govt of India has announced the latest and revised post office interest rates on small saving schemes for the period July, August and September, 2020. They have retained existing interest rates of the small saving schemes and not made any changes in Quarter 2 of FY2020-21 compared to Quarter-1. Post office schemes are considered as one of the safest investments as these are governed and guaranteed by Govt of India. In this article we would provide the latest and revised post office interest rates that are applicable for July to September, 2020.
Also read: RBI Floating rate saving bonds 2020 – Should you invest?
What are the changes in Post office interest rates for July to Sep 2020?
They have indicated no changes in small saving scheme interest rates in July, August and September, 2020 compared to earlier rates announced for Apr-Jun period.
Small Saving Scheme / Post office interest Rate Table – April, May and Jun 2020
Here is the latest post office interest rate table applicable in July to Sep 2020 period.
Trend of Post Office Small Saving Scheme Interest Rates in the last few quarters
Here is the last 8 quarter interest rates trend which would give an idea to investors how these interest rates are moving.
Post office Small Saving Schemes and their features
Now let review the new interest rates on post office schemes in detail.
1) Post Office Savings Account Interest Rate 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.
The post office SB rate is 4% per annum.
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 FD interest rates – 5.5% to 6.7%
Post office offer FDs too. Here are the details of the Post Office Fixed deposit schemes.
You can open Post office FD with a minimum of Rs 1,000 and in multiples of Rs 100.
There is no maximum limit on FD.
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 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 up to Rs 1.5 Lakhs.
You can open Post office FD online by logging into internet banking of the post office portal.
Also Read: How to open TNPFC FD Scheme online?
3) Post office RD interest rate 5.8%
Post office recurring deposit also called as National Savings Recurring Deposit is offered for 5 years tenure.
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 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.
4) Post office NSC interest rate is 6.8%
NSC is offered for 5 years tenure.
Latest NSC interest rate in 2020 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 thereof. There is no maximum limit on NSC investment. Such amount would quality for income tax deduction u/s 80c up to Rs 1.5 Lakhs during the financial year.
NSC interest rate for senior citizens would be same as regular investor.
If you observe NSC interest rate chart, it shows in declining mode in the last few quarters.
5) KVP Small Saving Scheme Interest 6.9%
If you are looking for the post office scheme to double the money, you can invest in KVP.
You can invest a minimum of Rs 1,000 and in multiples of Rs 100 thereof. There is no maximum limit on the investment.
The KVP interest rate now in 2020 is 6.9%. The interest is compounded annually and payable on maturity.
KVP doubles your money in 124 months.
KVP certificate can be en-cashed after 2 & 1/2 years from the date of issue.
6) POMIS interest rate 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 thereof. 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 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.
7) Latest Sukanya Samriddhi Account interest rate is 7.6%
Here are the Sukanya Samriddhi Yojana details.
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.
Sukanya Samriddhi Yojana 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 child age of 10 years from the date of birth.
If minimum Rs 250/- is not deposited in a financial year the 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 gets married.
Online Deposit facility is available through Intra Operable Netbanking and IPPB Saving Account.
8) SCSS interest rate is 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 for July to Sep 2020. Many get doubt whether SCSS interest rate is fixed or variable. This is variable, i.e. would get updated based on announcements from GOI / MoF every quarter and not fixed.
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.
Also Read: Shriram Transport Finance FD Scheme offers up to 10% yield
9) PPF interest rate is 7.1%
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 for 2020 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.
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Suresh KP
Latest Post Office interest Rates – Jul, Aug and Sep 2020
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very informative excellent details
This is an interesting blog . A lot of information is filled in this blog.Thank you for sharing. Great work and keep it up.
Hi Suresh
Can you post an article ranking the best health insurance plans for family covering all along with cover amounts and their premiums ? This will benefit many people
Sure Nanmith, can you pls post on suggest a topic so that it would be on my radar to post next week
Hi Suresh
I want to invest in PPF per month 3000 rs. I have SIP and other stuff already in place. Since PPF is safe and tax free returns compare to debt funds and FD/RD. Please let me know is it wise decision?
PPT is low risk option. However interest rate can fluctuate. SIP mutual funds on other hand are high risk, but can give high returns. If you are moderate to high risk investor and willing to invest for long term, you can go for SIP mutual funds. If you are low risk taker and okay with these returns / fluctuating interest rates (like in current scenario), one can go for PPF