India Post, through its vast network of post offices across the country, offers a whole host of government’s small savings scheme like Senior Citizen Savings Scheme, Monthly Income Account, Public Provident Fund (PPF) Scheme, Kisan Vikas Patra and Sukanya Samriddhi Yojana (SSY) Account Scheme among other saving schemes. The government keeps changing the interest rate on small savings schemes from time to time and the same rates are implemented by post offices and designated banks for the government-run small savings schemes. (Also read: All You Need To Know About Sukanya Samriddhi Yojana)
Here are the latest interest rates on various government run small savings scheme:
| Instruments | Rate of interest | Compounding Frequency |
|---|---|---|
| Post Office Savings Account | 4% | Annually |
| 1 Year Time Deposit | 5.5% (Annual Interest R. 561 on Rs. 10000 deposit) | Quarterly |
| 2 Year Time Deposit | 5.5% (Annual Interest R. 561 on Rs. 10000 deposit) | Quarterly |
| 3 Year Time Deposit | 5.5% (Annual Interest Rs. 561 on Rs. 10000 deposit) | Quarterly |
| 5 Year Time Deposit | 6.7% (Annual Interest R. 687 on Rs. 10000 deposit) | Quarterly |
| Senior Citizen Savings Scheme | 7.4% (Quarterly interest Rs. 185 on Rs. 10000 deposit) | Quarterly and Paid |
| Monthly Income Account | 6.6% (Monthly int. Rs. 55 on Rs. 10000 deposit) | Monthly and paid |
| Public Provident Fund Scheme | 7.10% | Annually |
| Kisan Vikas Patra | 7.60% | Annually |
| Sukanya Samriddhi Account Scheme | 7.60% | Annually |
Source: www.indiapost.gov.in
Investments made under some of the government’s small savings scheme are fully exempted from tax under section 80C of the Income Tax Act.
