Latest Post Office Interest Rates January - March 2021
This article will help you in knowing details of latest interest for all key post office schemes
Till 2016-17, interest rates used to be fixed on annual basis. However, from 2016-17, the rate of interest is being fixed on a quarterly basis. Keeping with the schedule, Government has announced the interest rate applicable to all Post Office Savings Schemes from 1st January 2021 to 31st March 2021 i.e. for Q4 of 2020-21
Government has kept interest rates UNCHANGED from last quarter.
Post Office Savings Account
Salient features of Post Office Schemes are,
- Minimum amount required to open account is Rs.500
- Who can open:-
(i) a single adult
(ii) two adults only (Joint A or Joint B)
(iii) a guardian on behalf of minor
(iv) a guardian on behalf of person of unsound mind
(iv) a minor above 10 years in his own name
- Minimum balance to be maintained in an account is INR 500/- , if balance Rs. 500 not maintained, at end of year, then one hundred (100) rupees shall be deducted from the account as maintenance fee. If the balance in the account becomes nil at end of year, the account shall stand automatically closed.
- Cheque facility/ATM facility are available
- Interest earned is Tax-Free up to INR 10,000/- per year
- Account can be transferred from one post office to another, however only 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 (or Dormant).
Post Office Fixed Deposits (FDs)
- Post office offers FD for tenures of 1 yr, 2 Yrs, 3 Yrs and 5 Yrs.
- Account can be opened as single, joint, Minor (above 10 years of age) or a guardian on behalf of minor.
- Minimum of Rs.1,000 and in multiples of Rs.100. There is no maximum limit.
- Account can be opened by cash /Cheque
- Account can be transferred from one post office to another
- Unlike saving account, any number of accounts can be opened in any post office.
- Interest shall be payable annually.
- 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)
- Tenure of Recurring Deposit is 5 years
- Minimum Rs.100 a month can be invested (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.
- Account can be opened by cash / 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.
- If there is a default in monthly deposit amount, the depositor has to first pay the defaulted monthly deposit along with default fee and then pay the current month deposit.
- Rebate is available for lump sum / advance deposit of at least 6 installments
- Loan can be taken on deposit
- Account can be extended for another 5 years after its maturity.
Post Office Monthly Income Scheme (MIS)
This is one of the most popular schemes of Indian post
- Account can be opened single, joint, Minor (above 10 years of age) or a guardian on behalf of minor.
- Maximum investment is Rs.4.5 lakh in a single account and Rs.9 lakh in joint account.
- Single account can be converted into Joint and Vice Versa.
- Maturity period is fixed at 5 years.
- Premature withdrawal are allowed after one year but before 3 years at the discount of 2% of the deposit value and after 3 years at the discount of 1% of the deposit value. (Meaning deduction from the deposit.)
- Interest shall be payable to the account holder on completion of a month from the date of deposit.
- Unclaimed interest shall not earn any additional interest.
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