Post office small saving scheme interest rates are low in the last few quarters. Ministry of Finance has announced latest post office interest rates applicable for Oct-2022 to Dec-22 period. We could see that they have increased interest rates for few small saving schemes schemes. In this article, we would provide revised and latest post office interest rates of small saving schemes applicable for October, 2022 to December, 2022.
Post Office Interest Rates – Oct-Dec 2022 – Summary of Changes
There are 12 small saving schemes offered by the post office. Some of these small saving schemes can be purchased even through major commercial banks in India.
Latest Post Office interest rates for Oct to Dec-2022 indicate that the Ministry of Finance has revised the interest rates for 5 post office small saving schemes. All these are minor increase only. Below is the change in interest rates.
- 2 Year FD interest rate revised from 5.5% to 5.7%
- 3 Year FD interest revised from 5.5% to 5.8%
- SCSS interest rate increased from 7.4% to 7.6%
- MIS scheme rate increased from 6.6% to 6.7%
- KVP interest rate increased from 6.9% to 7%.
- No change in interest rates for all other schemes.
Post Office Interest Rate Table
Here is the existing interest rates (Jul to Sep-22) vs. revised rates (Oct to Dec-22).
Features of Post Office Small Saving Schemes
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 interest rates on FD 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.
Current Post office RD rate 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.
The 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.
Latest KVP interest rate is 7%, which is compounded annually and paid on maturity.
KVP has a tenure of 123 months. Till last quarter it used to double in 124 months. Means, your money would get doubled in 123 months.
5) Post Office MIS
Post office Monthly Income Scheme (PO MIS) provides monthly income.
POMIS has 5 years tenure.
Latest Post office MIS rate is 6.7%.
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 7.6%
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.
SCSS is among the 7 investment options for Senior Citizens which can generate stable returns.
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 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 the 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.
If you can plan well, you can create 1 Crore by investing Rs 1.5 Lacs each by you and your spouse.
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