Latest Post Office interest Rates – January to March 2021
Latest Post Office interest Rates – January to March 2021
Ministry of Finance (MoF) has announced the latest post office rates for the period January to March, 20201. As expected, Ministry of Finance has retained current post office interest rates compared to the previous quarter. Post office schemes / small saving schemes are considered as the safest investments as these are guaranteed by Govt of India. What are the latest post office interest rates applicable for January to March, 2021? What are the features of post office schemes?
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Ministry of Finance Notification about Latest Post Office Interest Rates
MoF circulated notification on latest interest rates of post office.
Latest Post Office interest Rates Table – January to March 2021
Here is the revised and latest interest rates on small saving schemes that are applicable for the period January, February and March-2021.
1) Post Office SB account – 4.0%
2) Post Office interest rates on FD – 1 Year – 5.5%
3) Post Office interest rates on FD – 2 Years – 5.5%
4) Post Office interest rates on FD – 3 Years – 5.5%
5) Post Office interest rates on FD – 5 Years – 6.7%
6) Post office RD interest Rate – 5.8%
7) 5 Year Senior Citizen Savings Scheme interest rate – 7.4%
8) PO MIS rate – 6.6%
9) Post office NSC rate – 6.8%
10) PPF in post office interest rate – 7.1%
11) KVP rate – 6.9%
12) Sukanya Samriddhi Account rate – 7.6%
Trend of Post Office Interest Rates Table in last 8 quarters
Here is the trend of last 8 quarters post office interest rates.
Post Office Small Saving Schemes – Features
Below is Post office interest rates table of 2021 provides additional information on minimum amount, maximum amount and tenure information.
Here are the features of these post office small saving schemes.
1) Post Office Fixed Deposits: Post office offers term deposits (fixed deposits) for 1 year, 2 years, 3 years and 5 year period. Latest Post Office interest rates on FD for 1 to 4 years is 5.5%. The New interest rate on 5 years Post office FD is 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 Deposits: Post office RD tenure is 5 years. Latest Post office RD interest rate is 5.8% per annum, which 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 can be purchased at the post office that has 5 years tenure. The New NSC interest rate is 6.8% and compounded annually and paid on maturity. While there is no maximum limit, investment 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 would double your money in the post office. KVP has a tenure of 124 months. Revised KVP interest rate is 6.9%, which is compounded annually and paid on maturity.
5) Post Office MIS: Post office Monthly Income Scheme provides monthly income and has tenure of 5 years. Latest Post office MIS interest rate is 6.6%. One can invest a minimum of Rs 1,000 and maximum of Rs 4.5 lakhs for a single account. In case of joint account, one can invest up to Rs 9 Lakhs.
6) Sukanya Samriddhi Yojana Account (SSA): SSA can be opened for girl child by a parent or by a guardian. Latest Sukanya Samriddhi interest rate is 7.6%. It 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. It is eligible for income tax deduction u/s 80c. You can also make partial withdrawals from Sukanya Samriddhi account based on certain T&C.
7) Senior Citizens Saving Scheme (SCSS): Any individual who is 60 years and above can open SCSS. Revised Senior Citizens Saving Scheme (SCSS) interest rate is 7.4%, which is payable every quarter. Such interest rate would be reviewed and reset every quarter. Minimum investment in this scheme is Rs 1,000 and the maximum amount is Rs 15 Lakhs. It has a tenure 5 years. This scheme can be extended for a further 3 year period within 1 year of the maturity.
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 in post office interest rate is 7.1%, which 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. Interest received in PPF is tax free. Based on T&C, one can do partial withdrawals from PPF too.
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Hi I am interested in p. O. And nbfc FDs with high security and safety
kindly adv regular income without any tds deduction I am a tax payee
which is investment plan is good and tax free, which yields better interest rates, planning to invest for my Mom who dont have source of income. Please suggest.
Hello Ambika, If she is senior citizen, you can open bank fixed deposit on her name where she can get upto 7.5% interest rate which is safe investment option. Again don’t invest more than 5L in any bank (deposit insurance is available up to this limit). You can also check for Senior Citizen saving scheme which offers 7.4% per annum. you can open this in any bank. While these are not tax free, but post tax returns could be higher compared to any other options considering her age.