Post Office SCSS, MIS, Term Deposits, PPF, Sukanya Samriddhi, NSC, KVP Interest Rates Jan-Mar 2017 were declared. These interest rates will be applicable from 1st January 2017 to 31st March 2017.
First, recap the changes done to all Post Office Savings schemes for the year 2016. Earlier the interest rates used to be announced on yearly once. However, now 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 of those earlier posts below.
- Post Office Savings Schemes -Changes effective from 1st, April 2016
- Premature closure of PPF account – New Rules 2016
Based on these new changes, now onward interest rate will be declared on a quarterly basis. The earlier quarters (FY 2016-17) interest rate can be viewed in my earlier posts “Interest of PPF KVP NSC SCSS and Sukanya Samriddhi for April-June 2016“, “PPF and Sukanya Samriddhi Scheme interest rate July-Sept 2016“ and “PPF, Sukanya Samriddhi, NSC, KVP Interest Rates Oct-Dec 2016”
Below is the timetable for change in interest rates for all Post Office Savings Schemes.
As per this timetable, Government recently announced PPF, Sukanya Samriddhi, NSC, KVP Interest Rates Jan-Mar 2017 and also for all Post Office Savings Schemes.
The Government this time not changed the interest rates of all Post Office Savings Schemes.
PPF, Sukanya Samriddhi, NSC, KVP Interest Rates Jan-Mar 2017
Let us see the Post Office SCSS, MIS, Term Deposits, PPF, Sukanya Samriddhi, NSC, KVP Interest Jan-Mar 2017.
You may now have a sigh of relief that in falling interest rate scenario, this time Government not slashed interest rates of Post Office Small Savings Schemes.
Kisan Vikas Patra (KVP) now doubles in 112 months instead of earlier 110 months. This is due to the reduction of interest rate from the earlier 7.8% to 7.7% (since last quarter).
In Below chart, I will try to show you the interest rate movement from the first quarter of FY 2016-17 up to the fourth quarter of FY 2016-17.
You notice the changes of all schemes from FY 2016-17 first quarter. They reduced drastically and now maintained the status quo of the same first quarter for the second quarter. For the third quarter, interest rates reduced slightly. Finally, for fourth quarter they retained the same interest rates of 3rd quarter.
Hope this much information is enough to understand how the changes done to all Post Office SCSS, MIS, Term Deposits, PPF, Sukanya Samriddhi, NSC, KVP Interest Jan-March 2017.
Refer our earlier posts related to post office Savings Schemes-
- All about Public Provident Fund (PPF)
- How to encash or withdraw NSC bought from different Post Office?
- NSC-Accrued Interest taxation and way to reduce it
- Post Office Monthly Income Scheme or MIS – A complete guide
- Premature closure of PPF account – New Rules 2016
- PPF withdrawal rules & options after 15 years maturity
- Public Provident Fund -20 unknown facts
- 15 Rules of availing Loan against PPF (Public Provident Fund)
- How to transfer PPF Account from Post Office or Bank to another Post Office or Bank?
- Excel PPF Calculator-Calculate goal, loan or withdrawal amounts
- PPF-Loan and Withdrawal
- PPF-When to contribute to get higher returns?
- All about Kisan Vikas Patra (KVP)-2014
- Sukanya Samriddhi Account -When to invest to earn more returns?
- Sukanya Samriddhi Account-An investment scheme for your girl child
- Post Office Senior Citizen Scheme (SCSS)-Benefits and Interest Rate
- NSC and KVP in e-mode and Passbook mode from 1st July 2016
- How to transfer NSC from one person to another?
- India Post Help Centre and a Toll-Free Number 1924 features
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chan
Has the 2017 Apr-Jun rates been declared? Which government website do you refer to for the latest rates?
Basavaraj Tonagatti
Chan-Refer my latest post “PPF, Sukanya Samriddhi, NSC, KVP Interest Rates April-June 2017“.
pratik sengupta
Dear Sir,
my father retired with lumpsum money as retirement benefit.Therefore,I give him a suggestion for opening a scss a/c with SBI.so my questions as per opening scss a/c ,they gave a passbook so they said interest comes after every quarter.so,i had opened it on the month of feb so then my question is to you that when my 1st interest credited to my passbook???second question is as per new vpvy 2017 scheme upcomeing in april.so,my question is that should i wait for the LIC new pension scheme or invested money to old jeevan akshay 6 right now ?????
Basavaraj Tonagatti
Pratik-I replied to your FB message.
vinod Kumar
Dear Basu,
I have been depositing in SSA as per below…
21-Mar-2015-Rs,1000- Opening installment.
25-Mar-2015-Rs,50000- First installment.
19-Jan-2016-Rs,50000- second installment.
15-Feb-2017-Rs,42000- Third installment.
I am investing on yearly basis.
Is it the right way to invest to get more interest? Do you think that should I make any changes in the upcoming years?
Thanks
Vinod
Basavaraj Tonagatti
Vinod-Refer my recent post “Sukanya Samriddhi Account -When to invest to earn more returns?“.
chetan sharma
Hello Basa,
I am 31 year old working in IT firm
I want to invest around 3 Lacks per annum with below requirement.
1) 1 L/A to invest where I could get guaranteed & fixed return’s after 10 or max 15 year.
2) 5ok I want buy term plan + medical claim for family.
3) 1.8 L/A in mutual fund for investment.
I need some suggestion from you on which product or where to invest for mam benefits
for one thing I am sure, I don’t need any product for tax saving .
Regards
Chetan
Basavaraj Tonagatti
Chetan-You are doing the reverse. You are not targeting the financial goals. But how much you can invest a year.
chetan sharma
Thanks Basa for writing back
some home 3 to 3.5 lacks per Annum
Basavaraj Tonagatti
Chetan-First identify your financial goals, the amount required to achieve those goals and finally how much you can save per month. But you are doing the reverse.
Siva Madire
Is it a good option to invest in ICICI prudential retirement income solution 1V plan ?please let me know your thoughts
Basavaraj Tonagatti
Siva-Avoid products which is sold as RETIREMENT or PENSION product.
Amit VR
Hi Basu, Can you please elaborate why to avoid such product? Reason being – my adviser is suggesting the same thing to me for RELIANCE RETIREMENT PLAN. I am 38, M, N.Delhi, working in an IT company. Thanks in advance. – Amit VR
Basavaraj Tonagatti
Amit-Why I have to lock my money with single product, when the same can be achieved with open ended funds? Agents are BEST in selling but not in giving you best suggestion. Refer my post “Reliance Retirement Fund-Is it a best pension plan with 80C benefit?“.
Rajendra
Hi,
Interest earned on NSC is tax free? are there any post scheme which are tax free?
thanks,
Rajendra
Basavaraj Tonagatti
Rajendra-It is taxable income. PPF is tax-free product.
Rajendra
thanks. is it possible to invest in PPF on behalf of my father? he is senior citizen.
Basavaraj Tonagatti
Rajendra-What is your intention of investing? Reaching your goals or ONLY TAX SAVING??
Rajendra
only tax saving while earning secure interest. if i do FD or any other thing i earn interest but then i have to pay tax.
i already have PPF account for me and my spouse,so thinking to open another on my dads name.
Basavaraj Tonagatti
Rajendra-So no matter or you not at all worry about your financial goals??
Rajendra
basically, I have additional money which i want to save for future while earning some fixed interest. also, don’t want to pay tax on earned interest.
I can also opt for FD in bank or invest in Senior citizen saving scheme but then have to pay tax on earned interest.
Basavaraj Tonagatti
Rajendra-Your goals seems to not set. First set goals, selection of products will be at END.
Sanjay
Dear Basu, my father created a NSC in his and my name jointly (his name first), maturing this January. He deceased 4 year ago. I redeemed the NSC submitting his death certificate. I got the cheque in my name from Post Office.
Is this income taxable for me? Because I heard that money received in inheritance is tax free.
And when filing tax return, in which field/category do I need to show this amount?
Basavaraj Tonagatti
Sanjay-Money received in your case is not inheritance. Because it is holded by both of you JOINTLY.
Sanjay
Thanks Basu for the answer. Is the complete maturity amount is taxable for me? Is it added to my total income and taxed as per my tax slab? And which category do I show this – Income from other sources ? Please clarify.
Basavaraj Tonagatti
Sanjay-Interest income is taxable. Yes, it is added to your total income and taxed as per your tax slab. You have to show that under the income head of “Income from Other Sources”.
Sanjay
Thanks Basu, but I’m still not clear. Say my father invested 25k, now I got 50k after maturity, cheque in my name (consisting principle and interest).
Here ‘interest’ component is 25. Do I show 50k as ‘income from other sources’ or only the 25k?
Basavaraj Tonagatti
Sanjay-Your income generated is only Rs.25,000 another Rs.25,000 is your principal.
Sanjay
Thanks Basu, in my case which amount I show in ‘income from other sources’, 25k of interest or 50k (principle+interest) which I got cheque for ?
Basavaraj Tonagatti
Sanjay-Rs.25,000.
D.Harsha vardhan
Presently in senior citizen saving scheme maximum deposit is Rs 15 lakhs with quarterly interest @8.5%. On 31 Dec 2016, P.M announed a scheme of Rs 7.5 lakhs @8% monthly interest.
Will the new scheme be in addition to old scheme?
Basavaraj Tonagatti
Harsha-Yes, that is separate scheme which is not at all linked to SCSS.