Interest rates of post office schemes unchanged: PPF, Senior Citizen Saving Scheme, NSC - Hindustan Times

Interest rates of post office schemes unchanged: PPF, Senior Citizen Saving Scheme, NSC

By | Edited by Abhyjith K. Ashokan
Jun 17, 2024 04:19 PM IST

The government has left interest rates of post office schemes such as PPF, Sukanya Samriddhi Yojana, Senior Citizen Saving Scheme, and NSC unchanged.

The interest rates on small savings schemes have been left unchanged by the government for the first quarter of 2024, according to an Economic Times article.

Representational (Unsplash)
Representational (Unsplash)

The various schemes along with their details are listed as follows, according to the article:

Recurring deposit

The Indian government regulates the National Saving Recurring Deposit Account (RD), a savings account that is intended primarily for small investors to help them save money for a variety of uses.

This account, which has a 100 minimum deposit requirements, offers a convenient option for people who want to invest in the future without taking on a lot of risk.

Interest rate: The government offers 6.7% per year recurring deposit.

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Time deposits

There are four accounts available under the National Savings Time Deposit Scheme, each with a distinct maturity date: One, two, three, and five years.

The account has to have a minimum balance of 1,000 maintained at all times.

Investments made in five-year accounts qualify for tax deductions under Section 80C of the Income Tax Act, 1961.

Public Provident Fund Scheme

The minimum deposit is Rs. 500 every fiscal year, with a maximum deposit of Rs. 1.50 lakh. Deposits are eligible for deduction under Section 80C of the Income Tax Act. The amount can be placed in any number of payments during the fiscal year in multiples of Rs. 50, with a maximum of Rs. 1.50 lakh.

Interest rate: The government offers 7.1% per year (compounded annually) on PPF.

Senior Citizen Savings Scheme (SCSS)

The minimum deposit shall be Rs. 1000 and in multiple of 1000, subject to maximum limit up to Rs. 30 lakh in all SCSS accounts opened by an individual.

Interest is taxable if total interest in all SCSS accounts exceeds Rs.50,000 in a financial year and TDS at the prescribed rate shall be deducted from the total interest paid.

Interest rate: The government offers 8.2% interest on the Senior Citizen Savings Scheme.

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Post Monthly Income Scheme (POMIS)

The account can be opened with a minimum of 1000 and in multiples of 1000.

A maximum of 9 lakh can be deposited in a single account and 15 lakh in Joint account.

Deposits in all MIS accounts opened by an individual shall not exceed 9 lakh.

Interest rate: The government offers 7.4% on the Post Office Monthly Income scheme.

National Savings Certificate (NSC)

The minimum amount to be deposited is 1000 in multiple of 100 and there is no maximum limit.

Deposits qualify for deduction under section 80C of Income Tax Act. The deposit shall mature on completion of five years from the date of the deposit.

Interest rate: The government offers 7.7% compounded annually but payable at maturity on National Savings Certificate.

Kisan Vikas Patra (KVP)

The government offers 7.5 % interest on Kisan Vikas Patra which will be compounded annually. Amount invested doubles in 115 months (9 years & 7 months).

The deposit will mature on the maturity period prescribed by the Ministry of Finance from time to time as applicable on the date of deposit.

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Mahila Samman Savings Certificate

This can be opened by a woman for herself or by the guardian on behalf of a minor girl.

The government offers 7.5% interest per annum on Mahila Samman Savings Certificate. Interest will be compounded quarterly and credited in account and paid at the time of closure of account.

Sukanya Samriddhi Account Scheme

A SSY account can only be opened in the name of a girl child before she attains the age of 10 years.

The minimum deposit to be made is 250, and the maximum is 1,50,000 in a financial year, with subsequent deposits in multiple of 50.

There is no restriction on the number of deposits made in a month or in a financial year.

Interest rate: The government offers 8.2% per annum calculated on yearly basis, yearly compounded.

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