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India Post Office Schemes & Services-PPF, NSC, SSY, RD, TD, etc.

India Post is a prestigious Government operated postal system in India which comes under the Ministry of Communication.

India Post is the world’s largest widely distributed postal system in the world. Apart from postal services, India Post also offers a variety of different services like Postal Life Insurance, Post Payments Bank, etc.

In this article, we will discuss India Post Office Schemes & Services-PPF, NSC, SSY, etc.

India Post Office Schemes & Services-PPF, NSC, SSY, RD, TD, etc.

Post Office Savings Scheme Interest rates 2021

SchemeInterest Rate (% p.a)       Tenure
Post Office Savings Account4.00NA
5-Year Post Office Recurring Deposit Account (RD)5.80Five years
Post Office Time Deposit Account (TD)5.51, 2, 3 and 5 years
Post Office Monthly Income Scheme Account (MIS)6.6Five years
Senior Citizen Savings Scheme (SCSS)7.40Five years
Public Provident Fund Account (PPF)7.1015 years
National Savings Certificate6.80Five years
Kisan Vikas Patra (KVP)6.90Lockin 30 months
Sukanya Samriddhi Accounts (SSA)7.6021 years

Post Office Savings Account

Post Office Savings Account is similar to that of any bank saving account. You’ll get an interest rate of 4% on your deposited money which is similar to other bank savings account.

This savings account also comes with a debit card using which you can withdraw your money from a bank ATM or use it online on ECOM sales.

This account can be operated just like any other bank account with eBanking and Mobile Banking facility as well.

The minimum balance required to maintain is Rs.50/- for a generic account and account with cheque book facility, the minimum balance required is Rs.500/-. You can also transfer the Post Office Savings Account from one bank branch to other easily.

5-Year Post Office Recurring Deposit Account (RD)

5 years Post Office RD account is a monthly investment scheme for a fixed period of 5 years and with an interest rate of 5.8% per year(compounded quarterly).

This deposit account is a small savings account that allows you to invest as low as Rs.10 per month and thereafter at the multiple of Rs.5/- with no upper limit of investment.

A total of 60 monthly installments (5 years period) can be made from the date of opening. You can also get a loan on your Post Office Recurring Deposit Account investments at a 2% + RD interest rate applicable to the RD account. You can calculate the Recurring deposit by using an RD Calculator.

Post Office Time Deposit Account (TD)

Post Office Time Deposit Account comes with different interest rates depending on the tenure of the account. The following are the different interest rates that you’ll get based on the time of deposit-

TenureRate (w.e.f. 1.04.2021)
1 year Time Deposit5.5%
2 year Time Deposit5.5%
3 year Time Deposit5.5%
5 year Time Deposit6.7%

The minimum amount that one can invest is Rs.1000/- and thereafter multiples of Rs.100/- can be added with no maximum amount cap.

You’ll also get tax benefits for the investment made for a 5-year time deposit under Section 80C of The Income Tax Act, 1961.

Post Office Monthly Income Scheme Account (MIS)

Post Office Monthly Income Scheme is a guaranteed monthly income scheme where the account holder will receive a monthly income in form of interest payments by the Post Office.

The interest rate is announced quarterly and the current interest rate for POMIS is 6.60% p.a. A minimum of Rs.1500/- can be invested in the scheme and the maximum amount of investment is Rs.4,50,000/-, however, in the case of a joint account, the maximum investment value goes up to Rs.9,00,000/- per account.

The maturity period of this account is 5 years but, you can withdraw the funds after 1 year as well but, with penalties.  

Senior Citizen Savings Scheme (SCSS)

Senior Citizen Savings Scheme is a scheme specifically designed with keeping senior citizens in mind. It is a regular monthly incomes scheme where the post office would pay monthly interest for the amount you’ve deposited.

The minimum deposit amount is Rs.1000/- and the maximum amount for depositing is Rs.15,00,000/- per account. The interest rate is revised every quarter and the current interest rate is 7.40%.

The total lock-in period of this scheme is 5 years however, you can extend the scheme for another 3 years. You’ll get tax exemption under section 80C but, for the interest earned more than 50,000/- the TDS will be deducted.

Public Provident Fund Account (PPF)

Public Provident Fund is a long-term investment option for a period of 15 years currently offered at an interest rate of 7.1% p.a.

The no minimum or maximum age limit for account opening, you can open an account for minors as well.

You can start investment in PPF account for as low as Rs.500/- and the maximum amount that you can invest is Rs.1.5 Lakhs within a financial year (12 installments in a year). You can deposit money in your PPF account online as well.

The maturity period of the PPF Account is of 15 years with an option to extend the maturity in blocks of 5 years. The other benefit that includes in the PPF account is a loan facility and the tax-free interest along with tax deduction under Section 80C of The Income Tax Act.

National Savings Certificate

National Savings Certificate is a small savings scheme specifically designed for low and mid-income groups. The investment under this scheme can be done for as low as Rs.1000/- with no maximum limit.

The lock-in period of this scheme is 5 years with no premature withdrawal but, you can take a loan against your National Savings Certificate.

Investors are eligible to tax benefits under this scheme up to Rs. 1.5 lakhs while filing ITR, however, the income on the interest is taxable at the end of the 5-year plan.

Kisan Vikas Patra (KVP)

Kisan Vikas Patra was a specialized scheme launched by the Government of India for farmers, however, this scheme has extended to other residents of India as well.

The interest rate offered currently is 6.9% and you can start investing in this scheme for as low as Rs.1000/- and there are no maximum amount limits.

Investment in KVP is not eligible for a tax deduction and the interest earned on the investment is taxable too.

Sukanya Samriddhi Account (SSA)

Sukanya Samriddhi Account is an initiative of the Government of India that focuses on the protection and education of the girl child.

This scheme comes under the “Beti Bacho, Beti Padhao” campaign. Under this scheme, the parents of a girl child invest a certain amount(monthly or yearly) in the SSY account, and at the time of maturity, the girl child (now an adult) will be eligible to claim the SSY fund.

This fund can be used for the marriage or the education of the girl. The interest offered under this scheme is one of the highest with 7.6% which is revised quarterly.

The minimum amount that you can invest in this scheme is Rs.250 and the maximum amount is Rs.1,50,000/- per annum.  The guardian or parents of the girl child also get tax benefits up to Rs.1,50,000/- moreover, the interest at the time of maturity is also tax-free.

New Service Launched by Post Office- Toll-Free Number

India Post Office recently launched a toll-free number that you can use to get detailed information about your PPF, SSY, NSC, etc. accounts. To use this service, you have to call on 18002666868 from your Registered Mobile Number and follow the IVR instructions to get your account details.