What are the Post Office interest rates 2023. Post office interest rate recurring deposit 2023, FD, NSC, KVP, PPF, SSY and SCSS schemes? How the change will impact you once you subscribe any of post office saving scheme.
Let’s explore, how changing interest rates may impact you.
Table of Contents
Latest Post Office Interest Rates 2023
The small saving scheme interest rates have changed in 2023 from quarter to quarter. Beginning Jan- March 23, April- June 23, July – Sep 23 and now Oct- Dec 23.
PLEASE REFER TO THE CHART BELOW FOR Post Office Interest Rates 2023
Features of Post Office Small Saving Schemes
Post office Saving schemes are time bound saving schemes available for different requirements. The best part is all the saving schemes are safe and secure to invest in. Above all, the interest rate is guaranteed in the beginning itself( In the case of PPF, SSY, and SCSS, Saving Account alone, which you have already subscribed to, quarterly interest rates are changed.)
Post Office Saving Account
Just like we have Saving bank account, you can open saving account in post office too. The interest payout of few schemes are transferred to PO saving account.
Features of Post Office Saving Account
- Minimum Amount to open Account -Rs. 500
- Holding – Single/Joint/with minor ( above 10 years of age)/ as a guardian on behalf of minor
- Minimum balance to be maintained – Rs 500
- If not maintained , maintenance fee of Rs 100 will be deducted from account on the last working day of a financial year.
- In case after deduction of maintenance fee, the balance is negative, the account will automatically be closed.
- Cheque and ATM facility available
- Net banking and mobile banking is available.
- One can link the account with IPPB Saving Account
- Fund transfer ( sweep in/Sweep out) facility is available with IPPB Saving account.
- Interest up to 10K is tax free in nature
- At least one transaction is necessary in 3 Financial years to keep the account active.
Post Office Fixed Deposit ( FD)/ Post Office Time Deposit
Time deposit or Fixed deposit post office are available for subscription for a duration of 1 yr, 2 yr, 3 yr and 5 year only. You can deposit money and enjoy its benefits.
The sad part from these PO TD is taxable interest payout.
Features of Post Office FD
- Minimum FD amount Rs 1000 and in multiple of Rs 100
- No maximum limit
- Tenure available 1 year, 2 year, 3 year and 5 year
- Holding – Single/Joint/with minor ( above 10 years of age)/ as a guardian on behalf of minor
- Payment- Cash/Cheque
- Account can be shifted from One post office to another
- Any number of FDs can be opened
- Annual interest payment to saving account( if chosen)
- Premature withdrawal not possible before 6 months
- If closed between 6-12 months, Post office saving account interest will be payable
- Tax benefit available in 5 year FD only.
- Interest of FD is taxable in nature
Suitable For one time deposit for duration of 1 yr /2 yr /3 Yr / 5 yr. ( safe and guaranteed scheme with no tax benefit & taxable Interest)
Post Office Recurring Depsit ( RD)
Post Office Recurring Deposit is a monthly deposit scheme of post office. Here, you pay a fixed amount ( chosen in the begin of period) each month for a duration of 5 years. At maturity lumpsum amount is paid back to you.
Features of PO Recurring Deposit
- Minimum investment per month- Rs 100 (and in multiple of Rs 10)
- No maximum limit
- Holding – Single/Joint/with minor ( above 10 years of age)/ as a guardian on behalf of minor
- Duration of RD – 5 Year
- Payment- Cash/Cheque
- Premature Closure – after 3 years
- Account can be shifted from One post office to another
- Any number of RDs can be opened
- If not paid, penalty of Rs 1 per Rs 100 deposit will be charged.
- After 4 defaults, the account is discontinued.
- If not revived within 2 months,no further deposits are allowed
- The account can be extended for another 5 years.
- Loan can be taken for 50% of balance after 1 year of opening
- Rebate of Rs 10 for advance deposit for 6 months
- Rebate of Rs 50 for advance deposit for 12 months
- Interest of RD is taxable in nature
Suitable For monthly deposit for duration of 5 yr.
Who should Invest in PO Recurring Deposit ? Those who wish to pay money on monthly basis and want to make saving out of money contribution. ( safe and guaranteed scheme with no tax benefit & taxable interest)
Post Office Monthly Income Scheme ( POMIS)
POMIS provide monthly income to its holder. One can deposit a lump sum amount and take monthly income from next month. The maximum deposit amount is Rs 4.5 lac for a single user but if you open the account in joint name than maximum 9 lac can be deposited.
Features of POMIS
- Maximum Deposit in single Account
- Jointly max deposit is 9 lac
- Holding – Single/Joint/with minor ( above 10 years of age)/ as a guardian on behalf of minor
- Single holding can be converted to joint and joint can be converted to single
- Duration of RD – 5 Year
- Payment- Cheque
- Interest is credited to post office saving account
- Premature Closure – after 1 years at 2% discount
- Premature Closure – after 3 years at 1% discount
- Interest paid after completion of month
- If interest not claimed, no interest is earned on interest
- Also read SBI Recurring Deposit
Post Office Monthly Income Scheme – Features
Who should Invest in PO Monthly Income Scheme ? Those who wish to invest lump sum money and take monthly Payout ( income) . After completion of 5 year, entire deposited money is returned back to the investor. ( safe and guaranteed scheme with no tax benefit and monthly income is taxable).
Post Office Senior Citizen Saving Scheme ( SCSS)
Post Office SCSS is a senior citizen saving scheme. The scheme provide quarterly interest payout. A senior citizen can deposit maximum of Rs 30 lac and take quarterly payout from SCSS.
Read a detailed Post about Senior Citizen Saving Scheme
A Detailed Comparison between SCSS and PMVVY
Who should Invest in PO SCSS ? Those above 60 or above who wish to invest lump sum money and take quarterly Payout ( income). After completion of 5 year, entire deposited money is returned back to the investor. ( safe and guaranteed scheme with tax benefit in year 1 ( deposit year) and taxable quarterly payout)
Public Provident Fund ( PPF)
PPF is a 15 year deposit scheme. One has to compulsorily pay for 15 years in a PPF account.
Read detailed post about PPF
Public Provident Fund (PPF)-Features And Benefits || PPF Account Benefits 2023-24
Top 10 PPF Benefits you must know
PPF Extension Rules – Can I extend PPF after maturity?
PPF Vs Mutual Fund -Which is better?
Best 5 Post office Tax Saving Scheme
How to make online payment of ppfssa Post Office savings?
Who should Invest in Public provident Fund ( PPF) ? Those who wish to invest every year ( min Rs 500 or maximum Rs 1.5 lac) for 15 year period and want to enjoy tax benefit U/S 80C , tax free maturity can invest in PPF. After completion of 15 year, entire deposited money with interest is paid back to the investor. ( safe and guaranteed scheme with tax benefit and tax free maturity.
National Saving Certificate ( NSC)
PO NSC is a 5 year deposit scheme. Any number of certificates can be purchased.
Features Of NSC
- Minimum amount of investment – Rs 1000 and in multiple of Rs. 100
- No maximum limit
- Holding – Single/Joint/with minor ( above 10 years of age)/ as a guardian on behalf of minor
- Duration of RD – 5 Year
- Payment- Cash/Cheque
Read the detailed post about NSC.
Who should Invest in National Saving Certificate( NSC) ? Those who wish to invest a lump sum amount for 5 year period and want to enjoy tax benefit U/S 80C ( taxable interest) can invest in NSC. After completion of 5 year, entire deposited money with interest is paid back to the investor. ( safe and guaranteed scheme with tax benefit & taxable interest)
Kisan Vikas Patra ( KVP)
KVP is a lump sum deposit scheme wherein your money get doubled in 113 months.
Features of Kisan Vikas Patra ( KVP)
- Minimum Deposit – Rs 1000
- No maximum limit
- Duration – 10.3 years
- Holding – Single/Joint/with minor ( above 10 years of age)/ as a guardian on behalf of minor
- Premature closure – after 2.5 years
- Can be transferred from one post office to another
- NRI/HUF can’t invest in KVP
Who should Invest in Kisan Vikas Patra ( KVP) ? Those who wish to invest a lump sum amount and get double of their investment, can invest in KVP. No tax benefit U/S 80C and interest is also taxable. After completion of the duration double money is given to subscriber. ( safe and guaranteed scheme with no tax benefit)
Sukanya Samriddhi Account Yojana/ SSY
SSY is a special scheme for girl child welfare scheme.
Features of Sukanya Samriddhi Yojana
- Minimum Deposit – Rs 1000
- No maximum limit
- Duration – 15 year
- Holding – Single/Joint/with minor ( above 10 years of age)/ as a guardian on behalf of minor
- Premature closure – after 2.5 years
- Can be transferred from one post office to another
Read More about Suknaya Yojana
Who should Invest in Sukanya Samriddhi Accout Yojana/ SSY? Those who wish to invest every year to secure future of girl child below age 10 ( investment – min Rs 1000 or maximum Rs 1.5 lac) for 15 year period and want to enjoy tax benefit U/S 80C , tax free maturity can invest in SSY. partial withdrawal facility is available. After completion of 21 year, entire deposited money with interest is paid back to the girl (matured). ( safe and guaranteed scheme with tax benefit and tax free maturity.
Conclusion
Let me summarise the suitability of post office schemes on the basis.
PO TD – Fixed Deposit scheme 1/2/3/5 year – Money paid at maturity -No tax Benefit U/S 80 C- Taxable Interest
PO Recurring Deposit – 5 year scheme- pay monthly -No tax Benefit U/S 80 C- Taxable Interest
PO Public Provident Fund – 15 year scheme- pay monthly/ quarterly/half yrly/ yearly/ whenever you wish -tax Benefit U/S 80 C- Tax free Interest & maturity.
PO SCSS ( Senior citizen Only)- quarterly income scheme for senior citizens-5 year scheme- pay Lump sum -enjoy quarterly income-tax Benefit U/S 80 C in year one- Taxable Interest
PO KVP -Money doubling scheme- pay one time- No tax Benefit U/S 80 C- Taxable Interest
PO Sukanya Samriddhi Account Yojana/ SSY– girl child welfare scheme- 21 year scheme ( maturity) – pay for 15 years- pay monthly/ quarterly/half yrly/ yearly/ whenever you wish -tax Benefit U/S 80 C- Tax free Interest & maturity.
