post office scheme interest rates: Post Office Schemes latest Interest Rates in India for 2023

post office scheme interest rates: Post Office Schemes latest Interest Rates in India for 2023


The government offers various small savings or post office schemes catering to different needs of individuals. Interest rates on these savings schemes are announced once in three months (every quarter) by the government. These are popular schemes as they are backed by the central government and the returns here are fixed and guaranteed. Some of these schemes such as NSC, SCSS, PPF etc. also offer tax-saving benefits under section 80C of the Income-tax Act, 1961.

On December 30, 2022, interest rates for this quarter January to March 2023 was announced and next will be announced around March end or April 1, 2023.

Here are small savings schemes and interest rates offered for this quarter.

Sl.No. Instruments Rate of interest w.e.f 01.01.2023 to 31.03.2023 Compounding Frequency*
1 Post Office Savings Account 4 Annually
2 1 Year Time Deposit 6.6(Annual Interest Rs. 677 on Rs. 10000 deposit) Quarterly
3 2 Year Time Deposit 6.8(Annual Interest Rs. 697 on Rs. 10000 deposit) Quarterly
4 3 Year Time Deposit 6.9(Annual Interest Rs. 708 on Rs. 10000 deposit) Quarterly
5 5 Year Time Deposit 7.0(Annual Interest Rs. 718 on Rs. 10000 deposit) Quarterly
6 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 9Year= 14185.73 10Year=16264.76 Quarterly
7 Senior Citizen Savings Scheme 8.0(Quarterly interest Rs. 200 on Rs. 10000 deposit) Quarterly and Paid
8 Monthly Income Account 7.1(Monthly int. Rs. 59 on Rs. 10000 deposit) Monthly and paid
9 National Savings Certificate (VIII Issue) 7.0(Maturity Value Rs.1403 on Rs.1000 deposit) Annually
10 Public Provident Fund Scheme 7.1 Annually
11 Kisan Vikas Patra 7.2 (will mature in 120 months) Annually
12 Sukanya Samriddhi Account Scheme 7.6 Annually

Public Provident Fund (PPF)
One of the most well-liked investment options that receives exempt-exempt-exempt (EEE) tax status is PPF. Despite having a 15-year lock-in term, it starts allowing partial withdrawals after the seventh year. The third year marks the beginning of the loan facility. The PPF has a lock-in duration of 15 years, which is a well-known fact. A minimum annual contribution of Rs. 500 and a maximum contribution of Rs. 1.5 lakh are permitted by the regulations. On all accounts, whether they are maintained in their own name or on behalf of a minor, the maximum of Rs 1.5 lakh is applicable.
Interest rate for this quarter January- March 2023 is 7.1%.

Senior Citizen Savings Scheme (SCSS)
Senior citizens, defined as those 60 years of age and older, can invest in the Senior Citizen Savings Scheme and receive a consistent interest payment. This programme pays interest on deposits at intervals of four quarters. The principal has a five-year lock-in term, but after a year has passed, premature withdrawal is permitted—but only after paying a penalty. There is now a 15 lakh rupee limit on the total amount that any one person can invest in this scheme. You and your spouse can open the SCSS account separately or jointly. Only cheques will be allowed for deposits above Rs 1 lakh. Under Section 80C, the plan is eligible for a tax break.

Interest rate for this quarter January- March 2023 is 8%.Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi is a programme that falls under the “Beti Bachao Beti Padhao” initiative and has exempt-exempt-exempt (EEE) tax status. The investment amount, interest generated, and maturity amount are all tax-exempt as a result. Only one account may be opened in the name of each girl child by parents or legal guardians, with a total of two accounts permitted. If the minimum amount necessary is not deposited in a single financial year, a penalty will be assessed. To learn more about the Sukanya Samriddhi Yojana, click here.

Interest rate for this quarter January- March 2023 is 7.6%.

5-year NSC-VIII Issue
The lock-in term for National Savings Certificates (NSC) is five years. You can invest alone, jointly, or on behalf of a minor in this plan. In accordance with Section 80C of the Income Tax Act, the plan is also eligible for an income tax deduction. In this case, interest is reinvested rather than paid. Additionally, the reinvested interest qualifies for a Section 80C deduction (except for in the 5th year). A minimum of Rs. 1,000 should be invested, in multiples of Rs. 100. There is no upper bound. Five years from the deposit date, the account will reach its maturity. An NSC investor may also obtain loan financing by securing a bank pledge of their investment.

Post office time deposit (POTD)
Like a bank FD, time deposits are also accepted at the post office. One can place a term deposit (TD) for any of the four tenures—1, 2, 3, and 5 years. Anyone over the age of 10 can invest in the programme. A five-year time deposit also qualifies for section 80C tax benefits. Click here to read how to invest in post office time deposit.

Post Office Monthly Income Scheme (POMIS)
The scheme is open to investments from individuals (alone or jointly) and minors 10 years of age and older. The five-year duration of the programme. The investor’s savings account at the same post office will automatically receive the interest. Investors can only receive monthly interest payments from POMIS. After the first year is over, you can use the early withdrawal option by paying a fine.
Interest rate for this quarter January- March 2023 is 7.01%.

Kisan Vikas Patra (KVP)
Consider investing in KVP if you want to double your initial investment. The government reviews the interest rate on a quarterly basis, similar to other small savings programmes, and as a result, the amount of time it takes for the invested money to double depends on the interest rate. Normally, the price and the length of time are set for one quarter. KVP accounts can be opened with as little as Rs 1,000 and in multiples of Rs 100 after that. There is no maximum amount. In India, KVP certificates can be exchanged between individuals or between post offices.
Interest rate for this quarter January- March 2023 is 7.2%.

Post office recurring deposits (RD)
One can register a 5-year RD account with the post office to invest small fixed sums of money on a regular basis. The number of accounts that may be opened is unrestricted. The account will be closed after four regular defaults, although it can be reinstated within two months.
Advance deposits can be placed in an account for up to 5 years if an RD account is not closed. For deposits made in advance of at least six instalments (including the month of the deposit), there is a rebate of Rs. 10 for deposits made in advance of six months or Rs. 40 for deposits made in advances of a year.

Post office savings account
An individual can open a savings account with the post office, similar to a bank savings account, and the post office will pay interest on the account’s balance. Only cash with a minimum opening balance of Rs. 20 and no upper limit is permitted for opening accounts. A minimum amount of Rs. 50 must be kept in an account with no chequebook facility. Maintaining a balance of at least Rs. 500 is required to use the cheque service.



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Author: Shirley