Post office New Interest Rates 2023

Post office New Interest Rates from 1 January 2023 | Post office latest interest rate 2023

Post office New Interest Rates 2023 :- You must have heard the name of India Post, India Post controls the postal chain of the country. But in addition to controlling the postal chain, India Post has a lot of opportunities for investors, just like banks. Saving Scheme also drives. Which we know by the name of Post Office Saving Scheme or Post Office Saving Scheme.

The government keeps on starting various schemes to support the savings towards the citizens of the country, which is very beneficial for them, but the post office does not change its scheme every time, if any changes are to be made, then every year It is done in Jan, Mar, July, Oct, so now no changes have been made after the changes made in Oct 2022.

Post Office Kisan Vikas Patra (KVP) 2022

Post office New Interest Rates from 1 January 2023

scheme Interest Rate (% pa) Tenure Best for
Post Office Savings Account 4.00 NA small savings
5-Year Post Office Recurring Deposit Account (RD) 5.80 5 years small savings
Post Office Time Deposit Account (TD) 5.5 1, 2, 3 and 5 years small savings
Post Office Monthly Income Scheme Account (MIS) 6.7 5 years small savings
Senior Citizen Savings Scheme (SCSS) 7.60 5 years Retirement
Public Provident Fund Account (PPF) 7.10 15 years Risk-averse investors
National Savings Certificate 6.80 5 years Risk-averse investors
Kisan Vikas Patra (KVP) 7.0 Lockin 30 months small savings
Sukanya Samriddhi Accounts (SSA) 7.60 21 years girl child

Post Office Savings Account Post Office Savings Account

Post Office Savings Account is one of the schemes that the post office offers. This post office savings scheme is available all over India. In addition, the post office savings account offers a fixed rate of interest on deposits. Hence, Post Office Savings Scheme is suitable for individuals who want to earn fixed returns from their investments. A savings account can be opened in the post office with as little as Rs 20.

This post office savings scheme is very popular in the rural areas of India. The interest rate for Post Office Savings Account is fixed by the Central Government. Often, the rates are similar to those of a bank savings account. The interest rate in the post office savings account is around 4%, and the interest is calculated every month. Also, as per income tax rules, the interest amount below Rs 50,000 per annum is tax-free for the depositor.

Moreover, the depositors can withdraw the deposited amount anytime they want. However, they have to maintain a minimum balance of INR 50 in a normal account and INR 500 in case of check facility. Also, post office savings account can be easily transferred from one post office to another.

Post Office Recurring Deposit Account (RD)

Post Office Recurring Deposit Account (RD) :- The 5 Year Post Office Recurring Deposit (PORD) account allows investors to save on a monthly basis. Interest is compounded on a quarterly basis. There are a total of 60 monthly installments in this small post office savings scheme. Post Office RD is suitable for individuals who want to save through regular monthly deposits. The post office savings interest rate for this scheme is 5.8% per annum. Investors can estimate their returns from RD investment using RD calculator.

The minimum investment amount is INR 10, with no limit on the maximum amount. All resident Indian citizens above the age of 18 years can open an account with the post office. Also minors of ten years can open and operate the account jointly with their guardian. In addition, parents or guardians can open the account on behalf of their minor children.

One cannot prematurely exit their Post Office RD investment. However, in case of emergency, RD can be broken. It also comes with a penalty of INR 1 for every INR 100 invested. RD account has a minimum lock-in period of three months. Also, if premature withdrawal is done before three months, no interest is paid. Depositors will get back only their principal amount.

Post Office Fixed Deposit Account (TD) Post office New Interest Rates 2023

Post Office Fixed Deposit Account (TD) :- Post Office Time Deposit (POTD) account is one of the most popular post office savings schemes. The interest rates are determined by the Ministry of Finance every quarter. Post office New Interest Rates 2023

The minimum investment requirement in a post office fixed deposit account is INR 1,000. One can open a TD account for any of the following periods; One year, two years, three years and five years. Also, depositors can opt for reinvestment of interest. However, this option is not available for one year TD. Additionally, one can also choose to redirect the interest to the Five Year Recurring Deposit Scheme.

Post Office Monthly Income Scheme Account (MIS)

Post Office Monthly Income Scheme Account (MIS) :- POMIS is a low-risk investment scheme that provides depositors with regular monthly income in the form of interest payments. The Government of India supports POMIS. Interest rates are announced every quarter. The current rate of interest is 6.70% (Oct – Dec 2022). POMIS has a lock-in period of five years. On maturity, the depositor can choose to withdraw or reinvest the entire amount in the scheme.

The minimum amount for POMIS is INR 1,500, and the maximum limit is INR 4,50,000 per person. However, for joint holding, the maximum limit is INR 9,00,000. Also one can transfer their POMIS account from one post office to another post office. Furthermore, this Post Office Savings Scheme allows premature withdrawal after one year of account opening.

SBI FD VS Post Office FD: Where are the best returns?

Senior Citizen Savings Scheme (SCSS)

Senior Citizen Savings Scheme (SCSS) :- Senior Citizen Savings Scheme (SCSS) is a post office savings scheme suitable for senior citizens. Government of India supports it. Post Office Savings Scheme provides regular income as well as security for the depositors. Regular income comes in the form of interest payments. Interest is calculated every quarter and credited to the investor’s account. The interest rates are revised every quarter. The SCSS interest rate for the current quarter (Oct – Dec 2022) is 7.60%.

The minimum investment amount is INR 1,000 and the maximum is INR 15,00,000. This post office savings scheme has a lock-in period of five years. Additionally, investors have the option to extend the tenure of the scheme for another three years. Investment in SCSS is eligible for tax exemption under section 80C. However, the interest income is taxable. Also, TDS is deducted if the interest exceeds INR 50,000.

Public Provident Fund Account (PPF)

Public Provident Fund Account (PPF) :- Public Provident Fund (PPF) is a post office savings scheme launched by the National Savings Institute in 1968. This scheme guarantees returns as it is backed by the Government of India. For the current quarter (Oct 2022 – Dec 2022), the PPF interest rate is 7.1%. The Finance Ministry revises the PPF interest rates every quarter. The scheme pays interest annually on 31st March. However, interest is calculated every month on the minimum balance from 5th to 30th of every month.

The tenure of PPF investment is 15 years. Once invested, the investment gets locked-in for a period of 15 years. However, investors can make partial withdrawals of their investments. Investors can make withdrawal at the end of 5 years. They can withdraw only 50% of the balance amount at the end of the previous year or 4th year. Investors can opt for premature closure of their PPF account with a penalty of 1%.

National Savings Certificate (NSC)

National Savings Certificate (NSC) :- National Savings Certificate (NSC) is a small savings scheme which encourages savings among low income and middle income groups. This post office scheme is a Government of India initiative, and hence the returns are guaranteed. The interest for the current quarter (Oct 2022 – Dec 2022) is 6.8%. The tenure of this fixed income savings scheme is 5 years.

Hence the lock-in period is also five years. The interest is automatically invested back in the scheme. Investors will receive the investment and interest amount on maturity.

Investors can invest in NSC with an amount as low as INR 100. Only eligible investors can invest in NSC. Resident Indians are the only category eligible to invest in NSC. HUF, NRI and Trust cannot invest in NSC. One cannot withdraw one’s NSC investment prematurely except in the case of death of the investor. However, one can avail loan against his NSC investment at any time.

Investment in NSC is eligible for tax deduction under section 80C of the Income Tax Act, 1961. Investors can claim up to Rs 1.5 lakh as tax benefit while filing income tax return. The reinvested interest is also eligible for tax deduction. No TDS is applicable on interest. However, investors will have to pay income tax on the interest income at the end of 5 years.

Kisan Vikas Patra (KVP) Post office New Interest Rates 2023

Farmer Vikas Patra (KVP) :- Kisan Vikas Patra (KVP) is a small savings scheme launched for farmers. However, the scheme is extended to all residents of India. This post office savings scheme guarantees income in the form of interest. The scheme pays a fixed interest of 7.0% per annum (Oct 2022 – Dec 2022). Interest rates are revised every quarter- Investment in this scheme doubles in 123 months (10 years and 3 months).

Investors can invest in this scheme with an amount as low as INR 1,000. And there is no limit to the maximum amount that one can invest. Indian citizens aged 18 years and above can invest in KVP schemes at any local post office. PAN card is required as proof for investment above INR 50,000. And for investments above INR 10 Lakh, investors need to submit income proof.

The scheme has a lock-in period of 30 months, and investors cannot withdraw their investments during this time period. However, after the lock-in period, investors can withdraw their investment in a span of 6 months. Investment in KVP is not eligible for tax deduction. Moreover, the interest income is also taxable. Investors can use an income tax calculator to estimate their tax liability.

Know the difference between: KVP vs NSC

Sukanya Samriddhi Account (SSA)

Sukanya Samriddhi Accounts (SSA) :- Sukanya Samridhi Yojana (SSY) is an initiative of the Government of India that supports the ‘Beti Bachao, Beti Padhao’ campaign. This post office savings scheme was launched in 2015 to promote girl child education and marriage. It is a fixed income scheme that guarantees returns in the form of interest. For the current quarter (Oct 2022 – Dec 2022), the interest rate is 7.6%. The interest is revised on a quarterly basis. To estimate the returns they will get from this scheme, they can use the Sukanya Samriddhi Yojana calculator.

The parents or guardian of the girl child can invest in this scheme on behalf of the girl child before the age of 10 years. Only resident Indians can invest in this scheme. The scheme matures when the girl child attains the age of 21 years.

This scheme allows investment till the age of 15 years only. The minimum investment is INR 250, and the maximum investment is INR 1,50,000 per year. The scheme allows only one account per girl child and two accounts per family. In case of twins, the number of accounts allowed is three.

Premature withdrawal is not allowed till the maturity of the scheme. However, there are some exceptions when the girl child has unfortunately died or is suffering from a life-threatening illness. At the age of 18, 50% of the amount can be withdrawn for the purpose of higher education. Investment in SSY is eligible for tax exemption under section 80C of the Income Tax Act, 1961.

Investors can claim tax benefits of up to INR 1.5 lakh per annum. They can claim tax benefits while filing income tax return. Apart from this, the interest and maturity amount is also exempt from tax as this scheme comes under EEE category.

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