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Interest rates of various Post Office Small Savings schemes in 2021

Siddhi Sharma
/ Categories: Knowledge, Personal Finance
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Interest rates of various Post Office Small Savings schemes in 2021

Post office saving schemes offer several investment instruments, which are safe investment options available for risk-aversive individuals. These are government-backed schemes due to which any individual can invest in these instruments without the fear of losing money. 

Post office investment instruments are tax-efficient i.e., these investment instruments get benefit u/s 80C of Income Tax Act. Investment instruments eligible for tax benefit u/s 80C are 5-year Time Deposit (there is no tax benefit on the deposits with less than 5-year tenure), Senior Citizen Saving Scheme, National Saving Scheme, Monthly Income Scheme, Sukanya Samriddhi Account Scheme and Public Provident Fund. 

Let’s look at the interest rates applicable on various investment instruments offered by the post office: 

Instruments

Rate of Interest

Compounding frequency

Post Office Savings Account

4%

Annually

1 Year Time Deposit

5.5%

Quarterly

2 Year Time Deposit

5.5%

Quarterly

3 Year Time Deposit

5.5%

Quarterly

5 Year Time Deposit

6.7%

Quarterly

5 Year Recurring Deposit Scheme

5.8%

Quarterly

Senior Citizen Saving Scheme

7.4%

Quarterly and paid

Monthly Income Scheme

6.6%

Monthly and paid

National Savings Scheme

6.8%

Annually

Public Provident Fund

7.1%

Annually

Kisan Vikas Patra

6.9% (will mature in 124 months)

Annually

Sukanya Samriddhi Account Scheme

7.6%

Annually

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