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India Post provides a range of banking and remittance services.
Did you know you can open a savings or fixed/recurring deposit account at a post office? India Post provides a range of banking and remittance services, including the nine types of government-run small savings schemes. These nine schemes include the post office savings account, which is a savings account that can be opened with a minimum deposit of Rs 500. The government keeps revising the interest rates applicable to these small savings schemes from time to time. For the current quarter, which ends on December 31, these savings schemes provide interest rates to the tune of 4-7.6 per cent.
Here are the current interest rates applicable to small savings schemes:
| Instrument | Rate Of Interest (1/4/2020 to 31/12/2020) | Compounding Frequency |
|---|---|---|
| Post Office Savings Account | 4% | Annually |
| 1 Year Time Deposit | 5.5% (annual interest Rs 561 on Rs 10,000 deposit) | Quarterly |
| 2 Year Time Deposit | 5.5% (annual interest Rs 561 on Rs 10,000 deposit) | Quarterly |
| 3 Year Time Deposit | 5.5% (annual interest Rs. 561 on Rs 10,000 deposit) | Quarterly |
| 5 Year Time Deposit | 6.7% (annual interest R. 687 on Rs 10,000 deposit) | Quarterly |
| 5 Year Recurring Deposit Scheme |
5.8% maturity value for Rs 100; 5 Year = 6,969.67 (after extension with deposit) 6 Year = 8,620.98 7 Year = 10,370.17 8 Year = 12,223.03 9 Year = 14,185.73 10 Year = 16,264.76 |
Quarterly |
| Senior Citizen Savings Scheme | 7.4% (quarterly interest Rs 185 on Rs 10,000 deposit) | Quarterly and Paid |
| Monthly Income Account | 6.6% (monthly interest Rs 55 on Rs 10,000 deposit) | Monthly and paid |
| National Savings Certificate (VIII Issue) |
6.8% (maturity value Rs 1,389 for Rs 1,000 deposit)  Accrued interest for I-T purpose for Rs 1,000 Year 1 = Rs 68.00 Year 2 = Rs 72.62 Year 3 = Rs 77.56 Year 4 = Rs 82.84 Year 5 = Rs 88.47 |
Annually |
| Public Provident Fund Scheme | 7.10% | Annually |
| Kisan Vikas Patra | 6.9% (will mature in 124 months) | Annually |
| Sukanya Samriddhi Account Scheme | 7.60% | Annually |
| (Source: indiapost.gov.in) | ||
Of these schemes, the time deposit or term deposit scheme comes in four maturity options, ranging from one to five years.
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