Recently Government of India has revised interest rates and maturity periods for its small saving schemes. These small saving schemes include – Post Office Savings Account, Post Office Recurring Deposit, Monthly Income Account Scheme, Post Office Time Deposit, NSC, PPF, KVP, Senior citizens savings scheme and more. The post below briefs about all these schemes.
Post Office Savings Account (POSA)
- Interest Rates increased from 3.50% to 4.00% per annum
- Tax free interest upto Rs. 3500 in single account & Rs. 7000 in joint account in a year
- No limit on maximum deposit
Post Office Recurring Deposit (PORD) (5 Years)
- Deposit Rs 10 per month for 5 years and get Rs. 738.62 on maturity
- Interest Rate increased from 7.50% to 8.00%
- No limit on maximum deposit
Monthly Income Account Scheme (MIS) (5 Years)
- Interest Rate increased from 8.0% to 8.2% p.a.
- Maturity period reduced from 6 years to 5 years
- Maximum limit of deposit in single account is Rs. 4.5 Lakh and in Rs. 9 Lakh in joint account
- Bonus payable on maturity is discontinued on accounts opened on or after December 1, 2011. No effect on accounts opened before this date
Post Office Time Deposit (POTD) (1 – 5 Years)
- No limit on maximum deposit
| Period (Years) | Interest Rates (p.a.) | Maturity Amount for Rs 100 (Rs.) | |
| Old | New | ||
| 1 | 6.25% | 7.70% | 107.93 |
| 2 | 6.50% | 7.80% | 116.71 |
| 3 | 7.25% | 8.00% | 126.82 |
| 5 | 7.50% | 8.30% | 150.8 |
- Deposits upto Rs 1 Lakh for 5 Years are deductible under section 80C of the IT Act 1961
5-Year National Savings Certificate (NSC) (VIII Issue)
- Interest rate increased from 8.2% to 8.4% p.a.
- Maturity period reduced from 6 years to 5 years
- Rs. 100 would become Rs. 150.9 in 5 years
- No limit on maximum deposits
- Deposits upto Rs 1 Lakh are deductible under section 80C of the IT Act 1961
Senior Citizens Saving Scheme (SCSS) (5 Years)
- Maximum limit of deposit in single/joint account Rs. 15 Lakh
- Interest rate of 9% p.a.
- Deposits upto Rs 1 Lakh are deductible under section 80C of the IT Act 1961
Public Provident Fund (PPF) Scheme (15 years)
- Interest rate incresed from 8.0% to 8.6%
- Maximum limit of deposit in a financial year increased from Rs. 70,000 to Rs. 1 Lakh
- Deposits upto Rs 1 Lakh are deductible under section 80C of the IT Act 1961
- Tax free interest
10 years National Saving Certificate (NSC) (IX issue)
- New scheme with interest rate of 8.7% p.a.
- Rs. 100 would become Rs. 234.35 in 10 years
- No limit of maximum deposit
- Deposits upto Rs 1 Lakh are deductible under section 80C of the IT Act 1961
Kisan Vikas Patra (KVP)
- Discontinued from December 1, 2011
- No effect on existing certificate holders
Where to invest?
- All schemes available in more than 1.55 Lakh post offices
- PPF and Senior citizens savings scheme also available in select branches of 25 nationalised and other banks
Dear Amit, you are doing a great job. Thanks. 1) Can you please tell me, since when has the interest on PO SSS become taxable? [I remember it was tax-free earlier.] 2) Is the deduction of 10,000 u/s 80TTA [introduced in budget 2012] available from FY 12-13 or FY 11-12 itself? 3) Is the rebate of 7,000 in PO SB joint a/c over and above the 10,000 of 80TTA? Or is it part of the 10,000?
I could not find this info anywhere on the net, hence I turned to you. Thanks in advance.
dear sir
please let me know my saving account no 572406 post office mahwa teh.mahwa dit.dausa rajasthan. open in 2008 but intrest not including in my accounts.with any years.
with regards thanks
suresh kumar
You would need to talk to the post office officers. In case they don’t solve the problem approach the higher up officials. You can also go to consumer court in case you are not satisfied and Post office is not solving your problem.