India Post or Department of Posts, which runs the postal network of the country, has a network of more than 1.55 lakh post offices. It offers a number of saving schemes ranging from Post Office savings account to Sukanya Samriddhi accounts, as mentioned on its official website- indiapost.gov.in. Interest rates on post office saving schemes move in line with the government’s interest rates on small savings schemes, which are revised on a quarterly basis. The lowest interest rate in Indian post office saving schemes is offered on post office saving accounts.
Given below are saving schemes in post office with interest rates between 4% and 8.5%:
Post office savings account
Post office savings account interest rate is 4 per cent per annum, as mentioned on India Post’s official website- indiapost.gov.in. The annual returns on post office savings account are the lowest of all the savings accounts offered by India Post. The minimum amount for opening of a savings account is Rs. 20. For a non-cheque facility account, the minimum balance to be maintained is Rs. 50. Cheque facility is available if an account is opened with Rs.500 and for this purpose minimum balance of Rs. 500 in an account is to be maintained. Interest earned is tax free up to Rs. 10,000 per year from financial year 2012-13, according to the India Post website.
Post office monthly income scheme or MIS account
The post office MIS account offers an annual return of 7.3 per cent. The interest on post office MIS account is payable monthly. The minimum amount required to set up a monthly income account is Rs. 1,500. Maximum investment limit is Rs. 4.5 lakh in single account and Rs. 9 lakh in joint account, said India Post.
National savings certificates (NSCs)
National savings certificates (NSCs) offer an interest rate of 8 per cent per annum. . NSCs have a lock-in period of five years. This interest is payable annually but compounded quarterly. An NSC of Rs. 100 will offer Rs. 146.93 on maturity after five years, said India Post. NSC deposits qualify for tax rebate under Section 80C of I-T Act. The minimum amount required for opening NSC account is Rs. 100 in multiples of Rs. 100.
Kisan Vikas Patra (KVP)
Kisan Vikas Patra certificates offer an interest rate of 7.7 per cent per annum. The interest is compounded annually. The amount invested in a KVP doubles in 112 months (9 years and 4 months). The minimum amount required for opening of Kisan Vikas Patra (KVP) account is Rs. 1,000 in multiples of Rs. 1,000. There is no maximum limit, said India Post.
Sukanya Samriddhi Account
The current interest rate on sukanya samriddhi accounts is fixed at 8.5 per cent per annum. It is calculated and compounded on a yearly basis. A legal guardian/natural Guardian can open this account in the name of girl child. A guardian can open only one account in the name of one girl child and maximum two accounts in the name of two different girl children, noted India Post. A maximum of 1,50,000 can be deposited in this account in a financial year. There is no limit, however, on the number of deposits. The account can be closed after the girl child completes 21 years of age.