The Indian post office offers various types of deposit plans for those looking to invest. These instruments are also known as PO small savings schemes. The unique selling proposition (USP) of this plan is their sovereign guarantee, i.e., they are backed by the government of India.
Some of these schemes such as NSC, SCSS, TD, etc. also offer tax-saving benefits u/s 80C of the Income-tax Act, 1961.
As per the RBI circular, the Public Provident Fund will continue to earn 7.10% and the Senior Citizen Savings Scheme will earn 7.40% as before. likewise, post office time deposits (TD) will continue to fetch between 5.5% and 6.7% depending on the tenure of deposits.
The interest rates on PO deposit schemes are scheduled to be next reviewed towards the end of December.
Let’s see about Post Office Interest Rates Table.
Post Office Schemes for Sr. Citizens
Post Office Savings Account
PO Fixed Deposit | Interest Rates
Post Office Monthly Income Scheme (MIS)
Senior Citizen Savings Scheme
National Savings Certificates India (NSC)
Kisan Vikas Patra: Double the Money
Pradhanmantri Sukanya Samriddhi Yojana (PM-SSY) Account
Atal Pension Yojana
Loan Against Public Provident Fund
Doorstep Banking Services for Senior-Citizens
Post Office Interest Rates Table
Here is a look at the PO interest rates on various small savings schemes for the fourth quarter of the Fiscal Year.
|Instruments||Rate of interest in % (2022)||Compounding Frequency*|
|Post Office Savings Account||4.0||Annually|
|1 Year Time Deposit||5.5 (Annual Interest R. 561 on Rs. 10000 deposit)||Quarterly|
|2 Year Time Deposit||5.5 (Annual Interest R. 561 on Rs. 10000 deposit)||Quarterly|
|3 Year Time Deposit||5.5 (Annual Interest Rs. 561 on Rs. 10000 deposit)||Quarterly|
|5 Year Time Deposit||6.7 (Annual Interest R. 687 on Rs. 10000 deposit)||Quarterly|
|5 Year Recurring Deposit Scheme||5.8 |
Maturity value for Rs. 100 Dn.
5 Year = 6969.67 After extension with deposit.
6 Year = 8620.98
7 Year= 10370.17
8 Year= 12223.03
|Senior Citizen Savings Scheme||7.4 (Quarterly interest Rs. 185 on Rs. 10000 deposit)||Quarterly and Paid|
|Monthly Income Account||6.6 (Monthly int. Rs. 55 on Rs. 10000 deposit)||Monthly and paid|
|National Savings Certificate (VIII Issue)||6.8 |
(Maturity Value Rs. 1389 for Rs.1000 deposit) Accrued Interest for IT purpose for Rs. 1000 Dn.
|Public Provident Fund Scheme||7.1||Annually|
|Kisan Vikas Patra||6.9 (will mature in 124 months)||Annually|
|Sukanya Samriddhi Account Scheme||7.6||Annually|
- The deposits made in an account shall earn interest at the rate, as may be notified by the Government of India, from time to time, in respect of the Savings Scheme concerned.
- Interest shall be calculated in the manner provided in the PO Savings Scheme.
- In an account that has matured but not closed, the eligible balance in the account shall continue to earn interest at the rate applicable to the PO Savings Account, till the closure of the account.