Latest and Revised Post Office interest Rates – April to June 2021 - Review

Latest Post Office Interest Rates – April to June 2021

Latest and Revised Post Office interest Rates – April to June 2021 - ReviewRevised and Latest Post Office interest Rates – April to June 2021


It was a disappointing news for investors who has been investing and depending on small saving schemes when Ministry of Finance (MoF) has slashed latest post office rates for the period April to June, 2021 and issued notification on 31st March, 2021. However, Ministry of Finance has tweeted on 1st April, 2021 saying by mistake the orders were issued oversight and they are withdrawing the earlier MoF notification. Post office schemes / small saving schemes are considered as the safest investments as these are sovereign i.e. guaranteed by Government of India. In this article we would provide latest post office  interest rates applicable for April, May and June, 2021.

Also Read: 10 Debt Mutual Funds with 1 year return up to 27%

On 31st March, 2021, MoF has revised and reduced the small savings scheme interest rates (see the notification issued on 31-Mar-21 here).

However Finance Minister Nirmala Sitharaman said by oversight they issued the orders of reducing the small saving scheme interest rates and they are withdrawing this notification. There could be various reason (especially damage control during elections time) to withdraw earlier notification. Here is the tweet.

Latest Post Office interest Rates Table in 2021 (April to June)

Here are the latest and new post office interest rates from 1st April, 2021 to 30th June, 2021.

1)  Post Office Savings Account – 4%

2)  Post Office FD rates for 1 Year – 5.5%

3)  Post Office FD rates for 2 Years – 5.5%

4)  Post Office FD rates for 3 Years – 5.5%

5)  Post Office FD rates for 5 Years – 6.7%

6)  Post Office Recurring Deposit Rates – 5.8%

7)  Senior Citizen Savings Scheme (SCSS) interest rates – 7.4%

8)  Post Office Monthly Income Scheme interest rate – 6.6%

9)  NSC interest rate – 6.8%

10)  Post Office PPF Interest Rate – 7.1%

11)  Kisan Vikas Patra rate – 6.9%

12)  Sukanya Samriddhi Account (SSA) interest rate – 7.6%

Table showing trend of Post Office Interest Rates for the last 8 quarters

Here is the trend in last 8 quarters of post office interest rates. If you observe Post Office Interest Rates Table 2020, these rates are reduced from 1st April, 2020 onwards and these are stagnant after that.

Post office interest rates Trend from July-2019 to June-2021-Rev-min

Features of Post Office Small Saving Schemes

Below is Post office interest rates table 2021 April to June period that provides additional information on features, minimum amount of investment, maximum amount of investment and interest rates. One should note that post office interest rates for senior citizens are same as regular investors i.e. no special rates for them.

Post office interest rates table for April, May and June-2021 - Financial Year 2021-2022-Rev-min

Here are the key features of post office small saving schemes.

1) Post Office FD

Post office offers term deposits (FDs) for the tenure of 1 year, 2 years, 3 years and 5 year period.

Post Office FD interest rates for 1 to 5 years tenure is in the range of 5.5% to 6.7%.

These FD rates are compounded every quarter.

5 year FD is eligible for income tax deduction u/s 80c up to Rs 1.5 Lakhs.

2) Post office Recurring Deposit (PO RD)

Post office RD is offered for 5 years tenure.

Post office RD interest rate 2021 is 5.8% per annum

This RD interest rate is compounded every quarter.

Post office RD interest rate is comparable and more or less same compared to major commercial banks.

3) National Savings Certificate (NSC)

NSC is issued for 5 years tenure.

NSC interest rate is 6.8%, compounded annually and paid on maturity.

While there is no maximum limit, investment in NSC up to Rs 1.5 Lakhs in a financial year qualifies for income tax deduction u/s 80c.

4) Kisan Vikas Patra (KVP)

Kisan Vikas Patra (KVP) would double your money in the post office.

KVP has a tenure of 124 months.

Latest KVP interest rate is 6.9%, which is compounded annually and paid on maturity.

5) Post Office MIS

Post office Monthly Income Scheme (PO MIS) provides monthly income.

POMIS has 5 years tenure.

Post office Monthly Income Scheme interest rate in 2021 is 6.6%.

One can invest a minimum of Rs 1,000 in this scheme

Maximum amount of investment is Rs 4.5 lakhs for a single account. In case of joint account, one can invest up to Rs 9 Lakhs.

6) Sukanya Samriddhi Account (SSA)

SSA can be opened for girl child by a parent or by a guardian.

Latest Sukanya Samriddhi rate is 7.6%.

Interest is compounded annually and paid on maturity.

One can invest a minimum of Rs 250 and maximum of Rs 1.5 Lakhs in a financial year.

Amount invested in SSA is eligible for income tax deduction u/s 80c up to Rs 1.5 Lakhs.

7) Senior Citizens Saving Scheme (SCSS)

Individuals who are above 60 years can open SCSS.

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

This interest is paid every quarter.

Such interest rate would be reviewed and reset every quarter.

Minimum investment in SCSS is Rs 1,000 and the maximum amount is Rs 15 Lakhs.

SCSS has a tenure 5 years.

SCSS scheme can be extended for a further 3 year period within 1 year of the maturity.

There are no Post Office interest rates for Senior Citizens except for this SCSS scheme which is applicable only for senior citizens. Hence we are not providing separate interest rates table for senior citizens.

Also Read: LIC Bachat Plus provides 6.5% returns – What are positives and negatives?

8) Public Provident Fund (PPF)

PPF is one of the best investment to accumulate money in the long term.

PPF has a lock-in period of 15 years.

PPF interest rate for 2021-22 is 7.1%

This interest is compounded annually and paid on maturity.

Minimum investment in PPF is Rs 500 and maximum is Rs 1.5 Lakhs in a financial year.

Investment in PPF would quality for income tax deduction u/s 80c to Rs 1.5 Lakhs.

One can open PPF in Post Office or any large commercial banks.

If you are not happy with post office or any bank where you have PPF, you can transfer them to another bank.

Interest received in PPF is tax free.

On maturity of 15 years, PPF can be extended for a block of 5 years for any number of times.

MoF Notification issued on 31-Mar-21 for Post Office Interest Rates for April-Jun-21 period (Old for reference only)

MoF notification on latest interest rates on post office schemes here.

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Suresh KP

3 thoughts on “Latest Post Office Interest Rates – April to June 2021”

  1. Sir please tell me…. premature me kia hogaa post office mis scheme me?.
    Kia jitne daale utne hi milenge..agr 3 saal baad nikalenge toh????

  2. Hello, Can you please confirm the monthly cut off date for interest calculation for sukanya samridhi plan, I read somewhere it is as per lowest balance between day 11 to day30 each month but someone said it is as per PPF so between close of day 5 to day 30 on lowest bal. please if you can confirm.. Thanks

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