Latest Post Office Interest Rates July-Sept 2020

What is the latest Post Office Interest Rates July-Sept 2020? What are the latest Post Office interest rates on FDs, MIS, SCSS, NSC, KVP, PPF and SSY Schemes?

Earlier the interest rates used to be announced yearly once. However, from 2016-17, the rate of interest will be fixed on a quarterly basis. I already wrote a detailed post on this. I am providing the links to those earlier posts below.

Below is the timetable for change in interest rates for all Post Office Savings Schemes.

Post Office Interest Rate changing Time Table

As per the schedule, Government announced the interest rate applicable to all Post Office Savings Schemes from 1st July 2020 to 30th September 2020.

Latest Post Office Interest Rates July-Sept 2020

Ministry of Finance notified the applicable latest Post Office Interest Rates July-Sept 2020.

Just to quickly recap, 3rd and 4th quarters of FY 2019-20, there was no change. However, in the last quarter, the Government reduced the interest rates drastically.

Latest Post Office Interest Rates July-Sept 2020

You notice that there is a huge fall in the interest rates of all Post Office Saving Schemes from the last quarter. However, this quarter, by not changing any rates, it gives a big relief for us.

The trend of Post Office Interest Rates from July 2019 to July 2020

Below is the interest rate trend of last one year.

Features of Post Office Savings Schemes

# Post Office Savings Account

Like Bank Account, Post Office also offers you the savings account to its customers. The few features are as below.

  • Minimum Rs.500 is required to open the account.
  • Account can be opened single, jointly, Minor (above 10 years of age), or a guardian on behalf of a minor.
  • Minimum balance to be maintained in an account is INR 500/- , if balance Rs. 500 not maintained, a maintenance fee of one hundred (100) rupees shall be deducted from the account on the last working day of each financial year and after deduction of the account maintenance fee, if the balance in the account becomes nil, the account shall stand automatically closed.
  • Cheque facility/ATM facility are available
  • Interest earned is Tax-Free up to INR 10,000/- per year from the financial year 2012-13
  • Account can be transferred from one post office to another
  • One account can be opened in one post office.
  • At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active, else account became silent (Dorment).
  • Intra Operable Netbanking/Mobile Banking facility is available.
  • Online Fund transfer between Post Office Savings Accounts/Stop Cheque/Transaction View facility is available through Intra Operable Netbanking/Mobile Banking.
  • The facility to link with IPPB Saving Account is available.
  • Funds Transfer (Sweep in/Sweep out) facility is available with IPPB Saving Account.

# Post Office Fixed Deposits (FDs)

  • Minimum of Rs.1,000 and in multiples of Rs.100. There is no maximum limit.
  • FD tenure currently available is 1 yr, 2 Yrs, 3 Yrs and 5 Yrs.
  • Account can be opened single, jointly, Minor (above 10 years of age) or a guardian on behalf of minor.
  • Account can be opened by cash /Cheque and in case of Cheque the date of realization of cheque in Govt. account shall be date of opening of account.
  • Account can be transferred from one post office to another
  • Single account can be converted into Joint and Vice Versa .
  • Any number of accounts can be opened in any post office.
  • Interest shall be payable annually, No additional interest shall be payable on the amount of interest that has become due for payment but not withdrawn by the account holder.
  • The annual interest may be credited to the savings account of the account holder at his option.
  • Premature encashment not allowed before expiry of 6 month, If closed between 6 month to 12 month from date of Opening, Post Office Saving Accounts interest rate will be payable.
  • 5 Yrs FD is eligible for tax saving purposes under Sec.80C.

# Post Office Recurring Deposit (RD)

  • Minimum is Rs.100 a month and in multiple of Rs.10. There is no maximum limit.
  • Account can be opened single, jointly, Minor (above 10 years of age) or a guardian on behalf of minor.
  • Tenure of RD is 5 years.
  • Account can be opened by cash / Cheque and in case of Cheque the date of deposit shall be date of clearance of Cheque.
  • Premature closure is allowed after three years from the date of opening of the account.
  • Account can be transferred from one Post Office to another Post Office.
  • Subsequent deposit can be made up to 15th day of next month if account is opened up to 15th of a calendar month and up to last working day of next month if account is opened between 16th day and last working day of a calendar month.
  • If a subsequent deposit is not made up to the prescribed day, a default fee is charged for each default, default fee @ 1 Rs for every 100 rupee shall be charged. After 4 regular defaults, the account becomes discontinued and can be revived in two months but if the same is not revived within this period, no further deposit can be made.
  • If in any RD account, there is a monthly default amount, the depositor has to first pay the defaulted monthly deposit with default fee and then pay the current month deposit.
  • There is rebate on advance deposit of at least 6 installments, Rs. 10 for 6 month and Rs. 40 for 12 months Rebate will be paid for the denomination of Rs. 100.
  • One loan up to 50% of the balance allowed after one year. It may be repaid in one lumpsum along with interest at the prescribed rate at any time during the currency of the account.
  • Account can be extended for another 5 years after it’s maturity.

# Post Office Monthly Income Scheme (MIS)

  • Maximum investment is Rs.4.5 lakh in a single account and Rs.9 lakh jointly.
  • Account can be opened single, jointly, Minor (above 10 years of age) or a guardian on behalf of minor.
  • Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts (Rs. 4.5 Lakh).
  • Single account can be converted into Joint and Vice Versa.
  • Maturity period is 5 years.
  • Interest can be drawn through auto credit into savings account standing at same post office,orECS./In case of MIS accounts standing at CBS Post offices, monthly interest can be credited into savings account standing at any CBS Post offices.
  • Can be prematurely en-cashed after one year but before 3 years at the discount of 2% of the deposit and after 3 years at the discount of 1% of the deposit. (Discount means deduction from the deposit.).
  • Interest shall be payable to the account holder on completion of a month from the date of deposit.
  • If the interest payable every month is not claimed by the account holder such interest shall not earn any additional interest.

# Post Office Senior Citizen Savings Scheme (SCSS)

I have written a detailed post on this. Refer the same at ” Post Office Senior Citizen Scheme (SCSS)-Benefits and Interest Rate“.

# Public Provident Fund (PPF)

I have written various posts on PPF. Refer the same:-

# National Savings Certificate NSC (VIII Issue)

  • Minimum Rs.1,000 and in multiple of Rs.100.
  • No maximum limit.
  • Account can be opened single, jointly, Minor (above 10 years of age) or a guardian on behalf of minor.
  • Tax Benefit under Sec.80C is available.
  • Tenure is 5 years.

# Kisan Vikas Patra (KVP) Account

  • Minimum Rs.1,000 and in multiples of Rs.100. There is no maximum limit.
  • Account can be opened single, jointly, Minor (above 10 years of age) or a guardian on behalf of minor.
  • The money will be double at maturity. However, as the interest rate changes on a quarterly basis. The maturity period also varies once in a quarter.

# Sukanya Samriddhi Account Yojana (SSY)

I have written various posts on this. Refer the same:-

Conclusion:-By retaining the same interest rates, Government actually gave a big relief to all investors. I hope this will continue for another few quarters. At least I expect the Government will give the relief up to at least Corona issue resolves.

Refer our latest posts:-

8 Comments

  1. Can you share Govt Notification/Press release for this?

    Reply
    • Dear Sudesh,
      It is an office memorandum by the Ministry of Finance, Department of Economic Affairs (Budget Division). Wait for their uploading.

      Reply
      • Dear Sir,

        I am a senior citizen Retrd from Govt entity! Now this is become every quarter job to check postal interests and your blog is one of my source of information. You are doing good job! After looking at your comment, I am little concerned on how to take it. You mentioned some office memorandum. Are saying you have some access to it? Does this mean, before official announcement from GOI you can publish it officially? Can you share a link or copy of office memorandum to make sure readers have no dilemma on the blog content and take informed decision about this quarter investment plans. I read similar post here

        Reply
        • Dear Chakradhar,
          It is not like that. I too have accessibility from the available sources either from social media like Twitter. You can find this memorandum in social media. If you still not believe on my claim, then wait for their updating. They usually upload by late.

          Reply
          • Sir! I am not doubting your claim. Just want to be sure about your sources (not claims). Your claim should be right, but is it ethically fine to publish something without giving valid source of information? People talk a lot about lot on social media before budget and parliament bills etc. but actual things communicated after the announcements. Most of us started discarding rumors around social media until its from the official handles. Did you means to say, your source of information is same social media and you didn’t verify with official sources? Again, the guess could be correct after govt. uploading, but question remain, how come you announced board results/exam dates before university released it?

            Reply
            • Dear Chakradhar,
              I will never publish any content without the proper proof. If you really wish a proof, then search in Twitter. You will find the Memorandum. Also, I never ever written any content based on Whatsapp or Social media universities.

              Reply
              • Sir! Please do not get angry. I did not say, you wrote anything without proof. Just requested please do share your source link. At least twitter link to refer (being old age, I am unable to do all these so trusted your blog for learning). Also I pointed, if you have some link at govt entity who look into small savings interests, it is correct to publish them before official announce because you got the news from him in advance. Can you share the link or source?

                To clarify, I did not mentioned any “Whatsapp or Social media universities” things. It was a simple example when a college supposed to announce result, but the clerk leaks the news and other take the benefits of the same. It’s not about so called viral phrases of “Whatsapp or Social media universities” etc. You can re-read my last comment.

                Reply
                • Dear Chakradhar,
                  I am not angry 🙂 Nor I am pointing your questions are invalid. You must question, test and then believe. Regarding the Twitter image, please search with keyword “Small Savings Interest Rate”, you will find it. Why they shared on social media before publishing on their authentic website is left with Govt. I can’t say on that part nor I have control over it.

                  Reply

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