Latest Post Office Small Saving Scheme interest Rates – Oct, Nov and Dec-2020
Ministry of Finance (MoF) has announced the latest post office small saving scheme interest rates for the period Oct to December, 2020. MoF has retained existing interest rates of the small saving schemes and not made any changes for Quarter-3 (Q3) of FY2020-21 compared to the previous quarter. Small saving schemes are considered as one of the safest investments as these are guaranteed by Govt of India. In this article we would provide the latest and revised post office small saving scheme interest rates that are applicable for October to December, 2020.
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About Ministry of Finance Notification
MoF indicated no changes in small saving scheme interest rates in October, November and December, 2020 compared to the previous quarter. Here is the MoF notification.
Post office Small Saving Scheme interest Rate Table – Oct, Nov and Dec-2020
Here is the latest post office interest rate table applicable in Oct to Dec-20 period.
Trend of Post Office Small Saving Scheme Rates in last 8 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 in 2020 and their features
Now let review the new interest rates on post office schemes in detail.
1) Post Office Savings Account
Open Post office SB a/c 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 Fixed Deposits
Post office offer FDs which are considered as safe investment options.
Open FD as low as Rs 1,000 and in multiples of Rs 100 and no maximum limit.
Post office FDs can be opened for 1 to 5 years tenure.
Interest rate of 1 to 3 years FD is 5.5%, which is compounded every quarter.
Interest rate on 5 years FD is 6.7%, which is compounded every quarter. This FD is eligible for income tax deduction u/s 80c up to Rs 1.5 Lakhs.
You can open post office saving scheme FD online by logging into the post office internet banking portal.
3) Post office recurring Deposits
The post office recurring deposit has been offered for 5 years tenure.
Post office RD can be opened as low as Rs 100 and in multiples of Rs 10 thereon and no maximum limit.
The post office RD rate is 5.8% per annum, which is compounded every quarter.
This RD account can be transferred from one post office to another.
4) National Savings Certificate (NSC)
NSC is issued for 5 years tenure.
NSC interest rate is 6.8% and compounded annually and paid on maturity.
One can invest Rs 1,000 minimum. No maximum limit. However, investment up to Rs 1.5 Lakhs in a financial year would quality for income tax deduction u/s 80c.
5) Kisan Vikas Patra (KVP)
Kisan Vikas Patra would double your money. Investments in KVP would double in 124 months.
One can invest as low as Rs 1,000 with no maximum limit.
KVP interest rate now in 6.9%, which is compounded annually and paid on maturity.
One can encash KVP after 2.5 years too with certain T&C.
6) Post Office MIS (Monthly Income Scheme)
Post office MIS scheme provides monthly income and tenure is 5 years.
One can invest as low as Rs 1,000 and maximum of Rs 4.5 lakhs for a single account and Rs 9 Lakhs for joint account.
Post Office MIS interest rate is 6.6%.
POMIS premature withdrawal can be done after 1 year, but before 3 years, but there is a discount of 2% on the interest rate payable. After 3 years, the discount is 1% on the actual interest rate.
7) Sukanya Samriddhi Account (SSA)
One can invest as low as Rs 250 and maximum of Rs 1.5 Lakhs in a financial year. This amount is eligible for tax deduction u/s 80c.
Sukanya Samriddhi Yojana interest rate is 7.6%, which is compounded annually and paid on maturity.
Parents / Guardian can open this account in the name of girl child.
One can open account up for child age of 10 years from the date of birth.
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.
This can be closed after completion of 21 years.
Normal Premature closure will be allowed after completion of 18 years /provided that girl gets married.
8) Senior Citizens Saving Scheme
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, which is payable every quarter. Interets rate would be reset every quarter.
Minimum investment is Rs 1,000 and maximum of Rs 15 Lakhs.
Tenure of SCSS is 5 years.
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.
SCSS can be extended for a further 3 years within 1 year of the maturity.
Also Read: Best Pharma Mutual Funds to invest in 2020
9) Public Provident Fund (PPF)
Minimum investment is Rs 500 and maximum is Rs 1.5 Lakhs in a financial year. Such amount would quality for income tax deduction u/s 80c.
PPF interest rate is 7.1%, where interest is compounded annually and paid 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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Thanks a lot for writing this valuable blog. I want your prescription on the names of some Mutual Funds to be invested monthly ₹10,000-12,000 as you think best at present . My age is 54 years doing govt. job.
Expecting a reliable suggestion from an expert like you, sir . Happy upcoming New Year .
Hello Mukherjee, Pls indicate your risk appetite and for how long you can invest them?
Sir I deposited Rs.20000/- towards my PPF account on 03.04.2020 for FY 2019-20. However the bank refused stating that the Govt. direction came on 11.04.2020. Wheteher the bank’s action is right.
Hello Vijay, Let us know what direction you are talking about here? Are you talking about interest rate reset. This has come in the last day of the quarter in the last 12 quarters which I am tracking deligently.
Sir, Please clarify my small and silly doubt as for now interest rate changes every quarter for different schemes.
Lets say Post office MIS last year have interest rate of 7.7% and if i invested in MIS last year itself , then what interest today i will get . 7.7% or 6.6%.
Ashish, Except for PPF and SCSS, all other post office / small saving schemes investors would get the interest at the rate they bought it on that date. e.g. if you have invested in POMIS from 1 Oct to 31-Dec-20 where the interest rate is 6.6%. Assume the rates are going down to 6%, you would still get 6.6% which you invested during earlier period. This does not apply for PPF and SSA/SSY where the rates are reset every quarter based on MoF notifications
Dear Sir,
If I have invested in SCSS scheme in bank of Rs. 15 Lakhs, can I invest additional amount in Post Senior Citizen scheme ?
Bimal, SCSS can be opened either with scheduled bank or post office. However, one can invest maximum of Rs 15 lakhs per person irrespective of number of accounts they are holding.