Post Office reduce interest rates! Know post office new scheme 2020

 

The central government has announced a drastic reduction in the interest rates of small savings schemes. During the first quarter of the financial year 2020-21 i.e. April-June 2020, now those depositing money in the post office will get less interest.

Following the government's announcement of new rates, PPF will now get an interest of 7.1 per cent, compared to 7.9 per cent earlier. At the same time, National Savings Schemes i.e. NSC will now get 6.8 percent interest, whereas earlier it was getting 7.9 interest. At the same time, Sukanya Samriddhi Yojana (SSY) will now get 7.6 percent interest, which was 8.4 percent earlier.

Know new post office interest rates


Post office saving account

• Post office saving account will still get 4.0% interest.

Post office FD

• Post office will get 5.5% interest on 1 year time deposit.
• Post office will get 5.5% interest on 2-year time deposit.
• Post office will get 5.5% interest on 3 years time deposit.
• Post office will get 6.7% interest on 5 years time deposit.

Post Office RD

5-year recurring deposit of post office i.e. RD will now get 5.8% interest.

National Savings Certificates (NSC)

NSC is a popular choice among small investors because of the safety and tax benefits under Section 80C. You can invest a minimum of Rs. 1,000 and multiples of Rs. 100 thereafter. You get an interest rate of 7.9 per cent, compounded annually and paid at maturity at the end of five years. 

Kisan Vikas Patra (KVP)

This savings scheme offers an interest rate of 7.6 per cent, slightly lower than NSC, and can be enchased 2.5 years after issue. The minimum investment is Rs. 1,000, and in multiples of Rs. 100 thereafter.
 

Senior Citizens Savings Account

This is meant for individuals over 60 years or those over 55 who have retired or taken VRS. The interest rate is at 8.6 per cent, with a maturity period of five years.