Post office savings schemes – Complete guide

Post office small saving schemes IndiaPost office saving schemes revised interest rates from 1-Apr-2014

Last week, Finance Ministry has revised the interest rates on post office saving schemes in India. These revised interest rates on post office schemes would come into effect from 1st April, 2014. The rate hike decision is in line with the recommendation given by Shyamala Gopinath committee, which they felt that such hike in rates for small saving schemes will make these schemes more attractive and sync with market rates. Here is the quick summary of what has changed along with details of other saving schemes too.

Also Read: Complete guide on post office saving schemes in India

Revised rates for post office schemes from Apr-2014

1) Rates are revised for recurring deposits and term deposits only.

2) Recurring deposit rates for a 5 year deposit hike from 8.3% to 8.4% per annum.

3) For 1 and 2 year term deposit, interest is hiked from 8.2% to 8.4% per annum

4) For the 3 year term deposit, interest rate revised from 8.3% to 8.4%

5) For a 5 year term deposit, rates are revised from 8.4% to 8.5% per annum

Net summary is the rates are hiked only for recurring deposits and term deposits (fixed deposits). There is no change in interest rates for other schemes.

Complete summary of schemes with the old rate and revised rate (effective from 1st April, 2014)

Post office saving schemes revised interest rates from 1-Apr-2014

Conclusion: Recurring and fixed deposits offered by Post office offers good interest rates, which are more or less in line with bank rates. Yes, some private banks offer high interest rates, however looking at the safety offered by the post office, these post office small saving schemes are definitely attractive.

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Post office saving schemes revised interest rates from 1-Apr-2014

Suresh KP


  1. Urgent help required. My elderly father in law has lost his post office FD documents. How can those documents be retrieved? Any helpful information will be highly appreciated.

  2. I opened one reccurrent deposit in a post office in vizag three years back and pay rs 3000 every month. However this time in the month of July I could not pay premium as I found my account is not updated in computer. Services of post master is pathetic. He only keeps saying to come other day. So my advise not to keep your hard earn money in post office.

  3. these days it not easy to invest in post office articles says s nsc kvp starting amount is rs 1000 but if you got post office they say not available rs 5000 or 10000/ otherwise also post office staff should encourage for small savings but they dont most of the time their survers are down.

  4. I had opened an R.D. A/C effective from 31.10.2009 for an amount Rs.1000/- p.m. Although it has matured on 31.10.15 ,I was advised to continue the same for full 10years .to get better maturity value than to redeem & reinvest for next five years.But as the rate of intt. has been hiked by 0.2 %, will the maturity value not be more in latter case. Kindly advise accordingly as I am Sr. Ctzn. of 70yrs. The original RD A/C has run for 73 months with regular deposit . Thanking U in anticipation .


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