Latest and Revised Post Office Interest Rates July, August, September 2021 (Small Saving Scheme rates for Q2 FY2022)

Latest Post Office interest Rates – July to Sept 2021 [Q2 FY2021-22]

Latest and Revised Post Office Interest Rates July, August, September 2021 (Small Saving Scheme rates for Q2 FY2022)Latest Post Office interest Rates – July to Sept 2021 [Q2 FY2021-22]

Last quarter small saving scheme investors were surprised about ministry of finance slashing the post office interest rates and said sorry we did a mistake and old rates would continue. Many of us believed that there would be slash in post office rates for Q2 (July to September) of FY2022. But to a surprise, MoF kept the post office interest rates unchanged. Post office schemes / small saving schemes are considered as the safest investments as these have sovereign guarantee. In this article we would provide latest post office small saving scheme interest rates applicable for July, August and September 2021 (Q2 FY 2022).

Latest Post Office interest Rates Table in 2021 (Jul to Sept)

Small Saving Schemes are considered as safe investments in India as these are guaranteed by Govt of India. Here are the latest and new post office interest rates applicable from 1st July 2021 to 30th September 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%

Post Office Interest Rates Table showing trend – last 8 quarters

Here is the last 8 quarters post office interest rates trend. If you observe Post Office Interest Rates Table 2021, these rates are reduced from 1st April 2020 onwards and these are stagnant after that.

Table showing Post Office Interest Rates Trend - Oct-2019 to Sep-2021 (Small Saving Scheme Rates Trend)

Small Saving Scheme Interest Rates Table July to September, 2021

Post Office Interest Rates Table July, August, September 2021 (Small Saving Scheme rates for Q2 FY2022)

Post Office Small Saving Schemes – Key Features

Here are the key feature of small saving schemes. One should note that post office interest rates for senior citizens are same as regular investors i.e., no special rates for them.

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.

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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 interest rate on Sukanya Samriddhi 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. One can also look at various senior citizen saving schemes which are zero risk, low risk and moderate risk.

8) Public Provident Fund (PPF)

PPF is one of the best investments 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 PPF 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.

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Suresh KP

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