Post Office Small Saving Schemes Interest rates for Jan-2017 to Mar-2017

Post Office Small Saving Schemes Interest rates for Jan-2017 to Mar-2017

Few days back, the Ministry of Finance announced latest and revised interest rates for post office saving schemes applicable for the period Jan-2017 to Mar-2017 (4th Quarter). For the past couple of quarters, Ministry of Finance is reducing interest rates gradually. In current quarter to Jan-17 to Mar-17, every one was expecting that small saving schemes interest rates would fall in line with bank rates. However, thank god, there are no reduction in the interest rates. What are the latest post office interest rates for Jan-2017 to Mar-2017? Does these small savings schemes are still better compard to bank FD’s?

Also Read: Should you invest in Post Office Monthly Income Scheme to get regular income?

Post Office Small Saving Schemes Interest rates for Jan-2017 to Mar-2017

Here is the quick snapshot about the latest interest rates announced now.

1) No change in interest rates for all small saving schemes.

2) Highest interest rates is being offered on Sukanya Samriddhi Account Scheme and Senior Citizens Saving Scheme at 8.5% per annum.

3) With compounding of interest rates by a quarter, term deposits and recurring deposits offer high interest rates per annum.

4) Post office term deposit offers 7.18% to 8.03% per annum from 1 to 5 years tenure after quarterly compounding. Currently many banks are offering around 5.5% to 7% per annum only. Hence Post office Term deposits are best compared to bank fixed deposit schemes.

5) Iinvestment in KVP is doubled after 112 months. If you want to double your money, you need to deposit for at least 120 months or higher in the bank. KVP is beneficial compared to bank FD schemes.

6) The Post Office MIS Scheme offers 7.7% per annum interest rates, which is payable every month. If you are a retired person, investing in post office monthly income scheme (POMIS) is one of the best way to get safe monthly income.

7) If you want to save money for your girl child and get higher returns, you can invest your money in Sukanya Samriddhi Account Scheme which offers  8.5% interest rates. The maturity amount is tax free.

8) If you want to invest your money for child education or for daughter marriage, you can consider investing in Public Provident Fund (PPF) which offers 8.0% interest. While the tenure is for 15 years, it offers highest tax free returns along with tax benefits u/s 80C.

9) If you are planning to save money every month, you can consider post office recurring deposit which offers up to 7.5% annualized returns.

10) If you are a low risk taker and planning to invest money to save tax,  NSC is one of the best option to invest.

Also read: Top 14 Tax Saving Investment Options for 2017

Here are the Latest Post office Interest Rates for Jan-2017 to Mar-2017

Interest rates of Post Office Small Saving Schemes for Jan-2017 to Mar-2017

Conclusion: Some of the Post office small saving schemes, offer the highest returns compared other saving schemes. Some of the popular schemes like PPF and Sukanya Samriddhi Yojana Scheme offers highest interest rates. If you are a low risk taker, consider investing in small saving schemes offered by the post office.

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Post Office Small Saving Schemes Interest rates for Jan-2017 to Mar-2017

Suresh KP


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