Interest Rates in Post Office: Post Office Investments -

Interest Rates in Post Office: Post Office Investments

There are various investment schemes in the postal office, which have different interest rates in post office. Besides giving you a high-interest rate, they also provide tax benefits, and last but not least, the Government of India offers a guarantee for these schemes.

All investment schemes of the post office are exempted from tax; this means they gave tax exemption up to Rs. 1,50,000-00 under section 80C of the Income Tax Act. 

Some of the savings plans that the Post office provides are National Savings Certificate (NSC), Kisan Vikas Patra (KVP), Sukanya Samriddhi Yojana (SSY), Senior Citizens Saving Scheme (SCSS), Public Provident Fund (PPF), Recurring Deposit (RD), Time Deposit (5 years), etc. 

The Government reviews the interest rates on these schemes every three months, and they were updated in December 2021.

Interest Rates in Post Office for Various Investment Schemes 

Depending on your investment scheme, the post office has different interest rates for various investment schemes. Here are some investment plans that fetch a handsome interest in your investment. 

Post Office RD Interest Rates

Recurring Deposit (RD) account is a five-year fixed plan with monthly installments. RD plan needs sixty deposits during the set tenure, one monthly deposit for five years. 

The first Deposit for the RD scheme is made at the time of the opening of the account by the account holder. The second monthly Deposit is made on or before a specific day, which depends on the account opening date. 

  • The Recurring Deposit is a five years fixed plan. The interest rate in the post office for RD Accounts is 5.8 percent per year and is quarterly compounded. 
  • If you invest Rs. 1000 per month from 01-01-2023 for five years at the time of maturity, i.e., 01-01-2027, the maturity amount will be 69,697, which means you will earn 9,697 as interest. 
  • Small investors are helped by RD’s plan to invest as little as Rs. 100 every month and any amount more than Rs. 10. No upper limit of investment is fixed for Recurring deposits. 
  • Two adults can open a joint account. You can also open an account in the minor’s name. A person can also open multiple accounts.
  • You can transfer the RD account from one post office to another post office. 
  • If you fail to deposit a monthly deposit, you must pay Rs. one (1) as a fine for every 100 Rs. The account is flexible, which means you can withdraw up to 50 percent of the account balance after one year. 

National Savings Certificate (NSC) Interest Rate in Post Office

National Savings Certificate (NSC), a fixed saving scheme backed by the Government of India, can be opened at any post office. Any Indian citizen is eligible to invest in this scheme. NRIs and Hindu Undivided Families (UHFs) cannot invest in NSC.

NSC is a low-risk scheme as the Government is backing the plan. The scheme aims to help investors save money in small and medium amounts; the NSC also provides tax benefits. The post office has comprehensive coverage throughout India, so the scheme is popular. 

  • The post office’s interest rate on National Savings Certificate is 7% annually from 01-01-2023. The interest is compounded half-yearly, however, paid at maturity. NSC maturity period is 5 years. 
  • If you invest Rs. 1,50,000 in NSC for five years, the maturity amount you will get after five years will be Rs 2,08,423. This means will get an interest amount of Rs. 58,4,23. 
  • You can buy NSC individually, three adults can buy it jointly, and guardians can buy it for a minor or someone who is unsound by the mind. A minor over ten years can take the plan in his name. 
  • Tax benefit on investments up to 1,50,000 under NSC is also provided to the investor under section 80C of the Income Tax Act. 
  • NSC certificates can be used as collateral for bank loans.
  • NSC is transferable; it can be transferred from one person to another once during the investment period. 

Interest Rates in Post Office for Sukanya Samriddhi Yojana

The Sukanya Samriddhi Yojana (SSY) is meant to benefit a girl child. It was started by Shri Narendra Modi, the prime minister of India, on January 22, 2015. This scheme aims to save every girl child of every family in the country. 

The maturity period of SSY is 21 years from the date of the opening of the account or till the girl’s marriage after she becomes 18 years. The scheme was started under the campaign Beti Bachao Beti Padhao, focusing on securing the future of a girl child.  

  • Sukanya Samriddhi Yojana has a reasonable interest rate of 7.6% annually and is compounded yearly.  
  • In one financial you can invest a minimum of Rs. 1,000 and a maximum of Rs. 1,50,0000. For at least fifteen years, you must pay a minimum amount from the account’s opening date; after that, the account will continuously earn interest. 
  • SSY account can only be opened in the name of a girl child by her parents or guardians. At the time of the opening of the account age of the girl should be ten years or less.  
  • Investments up to 1,50,000 per year in SSY are tax-deductible under the 80C section of the Income Tax Act. SSY account interest is tax-free, and the maturity amount is also tax-free.
  • The maturity of investments under SSY is 21 years from the account’s opening date or up to the girl’s marriage after she becomes 18 years old. 
  • The SSY account will be closed if the investor becomes INR or loses Indian citizenship.  

Kisan Vikas Patra (KVP) Interest Rate in Post Office

The Post office Kisan Vikas Patra (KVP) scheme is a certificate scheme that helps an investor to double his investments under this scheme. The maturity of KVP is 124 months, i.e., 10 years and 4 months. If you purchase a KVP from the post office on 01-01-2021 for Rs. 10,000 at maturity, the corpus you will get will be 20,000.  

Kisan Vikas Patra is a small savings plan started by the post in 1988. Encouraging long-term savings in people is the primary aim of the scheme.  

  • The interest rate in the post office for Kisan Vikas Patra is 7.2% from 01-01-2023 and is compounded yearly. You can buy KVP from any post office in India. 
  • Your invested amount under KVP will give you double the amount in 10 years and four months (124 months) 
  • Under this scheme, Rs. 1,000 is the minimum investment amount, there is no maximum amount limit for KVP, and you can invest any amount in multiples of 100s. 
  • You can transfer KVP to any third person, as the certificate is transferable.
  • KVP provides the encashment facility after 2.5 years of investments as the certificate is comparatively liquid.
  • KVP is not providing tax benefits. Principle amount invested in KVP is tax detectable; also, interest earned on KVP is taxable. 

Interest Rate on Senior Citizens Saving Scheme

Post office Senior Citizens Savings Scheme (SCSS) is a long-term savings scheme for senior citizens of the country above 60 years of age. Being a government-backed scheme, SCSS provides attractive features and security for investors. 

SCSS was launched in August 2004 with a focus on senior citizens to provide them with a regular source of income when they attain the age of 60 years. The scheme offers tax benefits on investments. SCSS allows an investor with a premature withdrawal. You can invest in this scheme through the post office or all designated public sector banks.

  • The interest rate for SCSS is 8% per year, paid on each quarter’s first working day. 
  • The maturity period for the senior citizen’s saving scheme is 5 years from the account’s opening date. 
  • You will get an amount of Rs. 94,800 as quarterly interest if you invest 12,00000 in SCSS.
  • Premature withdrawal is allowed under this scheme, but you must pay penalties. If you withdraw before two years from the account’s opening date, you have to pay 1.5%; after two years, you have to pay 1% as a penalty.
  • After the scheme’s maturity, you can extend it for three more years. 
  • Under section 80C of the Income Tax Act, SCSS is taxable. But tax at source will be deducted if the amount of interest goes beyond 1,00000 in one year. 

Post Office Interest Rates For Different Schemes

Interest rates in Post Office for different schemes are as follows.  

Scheme Name Interest Rates
   Recurring Deposit Account (RD)         5.8% per year (quarterly compounded)
   National Saving Scheme (NSC)     7.0 % compounded annually (payable at maturity)
   Sukanya Samraddhi Yojana (SSY)        Sukanya Samraddhi Yojana (SSY)    
   Kisan Vikas Patra (KVP)         7.2% annually compounded.
   Senior Citizens Saving Scheme (SCSS)       8% per year

For the latest interest rates, visit


The post office of India runs several investment schemes for the citizen of the country to save money for the future. These investment schemes can be opened in any post office or designated public sector banks.

There are different interest rates in the post office for these investment schemes. Besides tax benefits, these schemes provide an opportunity for a citizen of the country to earn a handsome interest on investment. 


Similar Articles

Leave a Reply

The reCAPTCHA verification period has expired. Please reload the page.