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 gives 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 interest rates on these schemes are reviewed by the Government every three months and are updated in December 2021.

Interest Rates in Post Office for Various Investment Schemes 

There are different interest rates in post office for different investment schemes, depending on the scheme you are investing in. Here are some of the schemes that fetch a handsome interest on your investment. 

RD (Recurring Deposit) Interest Rates in Post Office

Recurring Deposit (RD) account is a fixed plan for 5 years with monthly installments. RD plan needs sixty deposits during the fixed tenure, which is one deposit per month for 5 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 certain day, which depends on the account opening date. 

  • 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 01-01-2020 for five years at the time of maturity i.e. 01-01-2027 the maturity amount will be 69,697 that 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 then have to 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. 

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) are not allowed to invest in NSC.

The scheme aims to help investors save money in small and medium amounts, also the NSC provides tax benefits. This is a low-risk scheme as the government is backing the scheme. As the post office has wide coverage throughout India the scheme is very popular. 

  • The interest rate the post office paid on National Savings Certificate is 6.8% annually. 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 5 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 their minors or for a person which is unsound by the mind. A minor over the age of 10 can but on 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 person once during the investment period. 

Sukanya Samriddhi Yojana Interest Rate

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 for every girl child of every family of 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 with a focus on securing the future of a girl child.  

  • Sukanya Samriddhi Yojana has a good interest rate of 7.6% per annum and is compounded yearly.  
  • In one financial you can invest a minimum of Rs. 1,000 and a maximum of Rs. 1,50,0000. At least for fifteen years, you have to pay a minimum amount from the opening date of the account after that interest will be continuously earned by the account. 
  • 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 10 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 opening date of the account 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.   

KVP Interest Rate in Post Office

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. This means if you purchase a KVP from the post office on 01-01-2021 for Rs. 10,000 at the time of 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 post office for Kisan Vikas Patra is 6.9% that is compounded yearly. You can buy KVP from any post office in India. 
  • Your invested amount under KVP will give you a double amount in 10 years and 4 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.
  • Encashment facility is provided by KVP after 2.5 years of investments as the certificate is comparatively liquid in nature.
  • 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, which are above 60 years of age. Being a government-backed scheme SCSS provides attractive features and security for investors. 

SCSS was launched in 2004 August with a focus on senior citizens to provide them a regular source of income when they attain the age of 60 years. The scheme provides 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.

  • Presently the interest rate for SCSS is 7.4% 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 opening date of the account. 
  • You will get an amount of Rs. 94,800 as quarterly interest if you invest 12,00000 in SCSS.
  • Premature withdraw is allowed under this scheme but you have to pay penalties. If you withdraw before 2 years from the opening date of the account you have to pay 1.5% and after two years you have to pay 1% as a penalty.
  • After the scheme 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 Table 2021

The interest rate for different schemes run by the post office.  

   Name of Scheme Interest Rate
  Recurring Deposit Account (RD)   5.8% per year
  National Saving Scheme (NSC)   6.8% annually compounded, payable at    maturity
  Sukanya Samraddhi Yojana (SSY)   7.6% annually calculated
  Kisan Vikas Patra (KVP)   6.9% annually compounded
  Senior Citizens Saving Scheme (SCSS)*   7.4% 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. There are different interest rates in post office for these investment schemes. These investment schemes can be opened in any post office or designated public sector banks. 

Besides tax benefits, these schemes provide an opportunity for a citizen of the country to earn a handsome interest on investment. 

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