Post Office Small Saving Schemes Interest rates for Oct to Dec-2017
Two days back, the Ministry of Finance announced latest and revised interest rates for post office saving schemes applicable for the period October-2017 to December-2017 (3rd Quarter of FY18). They have indicated that there would not be any change this time for 3rd Quarter which would be big relief to investors who are depending on small saving schemes. For the past 6 quarters, Ministry of Finance is reducing interest rates gradually. In current quarter to October-17 to December-17, Ministry has not made any change in interest rates of small Saving Schemes. Though there is no change in interest rates, how does the latest post office interest rates for October-2017 to December-2017 look like? Which are the post office small saving schemes offer highest interest rates compared to bank FD’s or other saving schemes?
Also Read: Best Bank FD Rates in Oct-2017 offering highest rates
Post Office Small Saving Schemes Interest rates for Oct to Dec-2017
Here is the quick snapshot about the latest interest rates which is applicable from October to December, 2017.
1) Among the post office saving schemes, highest interest rates is being offered on Sukanya Samriddhi Account Scheme and Senior Citizens Saving Scheme at 8.3% per annum.
2) With compounding of interest rates by a quarter, term deposits and recurring deposits offer high interest rates per annum.
3) Post office term deposit offers 6.8% to 7.6% per annum from 1 to 5 years tenure. After compounding, the term deposits gives yield of 6.97% to 7.8% per annum. Currently many banks have reduced FD rates which are between 4.5% to 7% per annum only. Hence Post office Term deposits are best, compared to bank fixed deposit schemes.
4) Investment in Kisan Vikas Patra (KVP) would be doubled after 115 months as per latest interest rates. If you want to double your money, you need to deposit for at least 125+ months or higher in the bank. KVP is still beneficial compared to bank FD schemes.
5) The Post Office MIS Scheme offers 7.5% 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.
6) 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 8.3% interest rates. The maturity amount is tax free.
7) If you want to invest your money for child education or for your daughter marriage, you can consider investing in Public Provident Fund (PPF) which offers 7.8% interest. While the tenure of PPF is for 15 years, it offers highest tax free returns along with tax benefits u/s 80C.
8) If you are planning to save money every month, you can consider post office recurring deposit which offers up to 7.1% annualized yield. You can invest ₹ 1,000 per month in post office RD scheme for 5 years. Your investment amount would be ₹ 60,000 (1,000 x 60 months) and the maturity amount would be ₹ 72,300. You can invest minimum of ₹ 10 and in multiples of RS 10 there-off.
9) If you are a low risk taker and planning to invest money to save tax, NSC is one of the best option to invest.
Here are the Latest Post office Interest Rates for Oct-2017 to December-2017
Also Read: Which are the Company FD Schemes offering upto 10.5% yield?
Conclusion: Post office small saving schemes offer the highest returns compared other saving schemes and bank FD 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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Suresh
Post Office Small Saving Schemes Interest rates for Oct to Dec-2017
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17 comments
Add a comment ↓Dear Sir
As an agent I want to inspire small shopkeepers for different Post Office saving schemes. Whom to meet at which Post Office?
Current interest rates in all.
I am ex cervicemen. I am senior. Yes/no
Please notify me
pls let me know tax free schemes for senior citizen of age 67 with comparatably good RETURN.reply is expected at the earlist .
waiting for your moderation
Sir,
I am looking at investing FD for 5 years , can you suggest what would be ideal for senior citizens
As per your data Post office saving under 5 year senior citzen is returning 8.3 % p.a and LIC fixed deposit is 11.81% for 5 years.
Is this latest data and can i goahead with LIC looking at the higher yeild , also the amount should not be taxable.
Regards,
1. Is post offive 5 year FD eligible for 80C benefit
2. Any senior citizen rate addition
Nice
yes… this article was really helpful, than all the article i went thru
What if we withdraw money after 6 months…
An highly educative & informative topic. People should not be mislead by banks shining advts.They spend heavily on advts.thereby failing to offer higher interest rates.Post office always respects customer interest first to self. It has unshattered goodwill since 160+yrs.
Nice
Thank you Ganesh
Hi Suresh
Post office for 5 years FD is giving 7.6% and most of the public sector banks gives less than 6.5%
Can you please do some research on public sector banks bad loans and which banks are at risk?
Thank you very much
Maven
Government is decreasing interest rates very fast in post office schemes also, which is becoming troublesome for such small savers, who have limited corpus and solely depend on their interest income under pressure from many such businessmen who misuse loans taken and make default in repayment, due to which small investors suffers.
Agree Kumar