India Post currently provides annual returns to the tune of 4-7.6 per cent through nine small saving schemes – including the 15-year Public Provident Fund (PPF). Funds can be parked in these small savings schemes through the designated post office branches. Currently, the interest rates applicalbe to these schemes are reviewed every quarter. For the quarter ending September 30, the small savings scheme interest rates were kept unchanged at existing levels, according to a finance ministry statement. Out of these nine financial instruments, the Time Deposit Small Savings Scheme comes in four options of maturity, ranging from one year to five years.
Here are the latest interest rates applicable to small savings schemes:
|Post Office Scheme||Interest Rate||Compounding Frequency|
|Post Office Savings Deposit||4.00%||Annually|
|One-Year Time Deposit*||5.5%||Quarterly|
|Two-Year Time Deposit*||5.5%||Quarterly|
|Three-Year Time Deposit*||5.5%||Quarterly|
|Five-Year Time Deposit*||6.7%||Quarterly|
|Five-Year Recurring Deposit||5.8%||Quarterly|
|Five-Year Senior Citizen Savings Scheme||7.4%||Quarterly and paid|
|Five-Year Monthly Income Scheme||6.6%||Monthly and paid|
|Five-Year National Savings Certificate||6.8%||Annually|
|Public Provident Fund Scheme||7.1%||Annually|
|Kisan Vikas Patra||6.9%||Annually|
|Sukanya Samriddhi Account Scheme||7.6%||Annually|
|(Source: India Post)|
* The time deposit savings scheme is available in four maturity period options: one year, two years, three years and five years.
In the five-year National Savings Certificate scheme, an investment of Rs 1,000 grows to Rs 1,389.49 at maturity, according to India Post’s website – indiapost.gov.in.
India Post – which comes under the ambit of Ministry of Communications – has a network of more than 1.5 lakh post office branches across the country, according to its website.