If you are planning to invest money in post office schemes then there is good news for you. The government has not made any change in the interest rates of post office small savings schemes for the July-September quarter of 2021. Along with this, the interest rates of small savings schemes will remain the same, which were for the April to June quarter of 2021. Let us inform that in view of the declining interest rates on other investment options like FD, there is no change in the interest rates of small savings schemes of the post office, which is good news for regular income investors. Let us inform that for the July-September quarter, the post office interest rate cut was being estimated. But the non-cutting of interest rates is good news for investors. Know further the interest rates of all the schemes and know in how many months your money can double.
Interest Rates of Post Office Schemes
At present, Sukanya Samriddhi Scheme 7.6 percent, Senior Citizen Saving Scheme 7.4 percent, Public Provident Fund (PPF) 7.1 percent, Kisan Vikas Patra (KVP) 6.9 percent, National Saving Certificate (NSC) 6.8 percent, Monthly Income Scheme (MIS) 6.6 percent , Post Office Savings Account 4 percent, Post Office Recurring Deposit (RD) 5.8 percent and Senior Citizen Saving Scheme 7.4 percent interest rate.
Interest Rates on Post Office Time Deposit
In other schemes, the Post Office Time Deposit (TD) will offer 5.5 percent interest for 1 year, 5.5 percent on 2 years, 5.5 percent on 3 years and 6.7 percent on 5 years.
Kisan Vikas Patra
The scheme we are talking about is Kisan Vikas Patra (KVP). The current interest rate in this scheme is 6.9 percent. This interest rate is applicable from 1st April 2020 and will now continue for the July-September quarter as well. Let the money deposited by you in KVP at this interest rate double in 124 months (10 years and 4 months). Your money in this plan will be doubled guaranteed. The good thing is that being a government scheme, your money will also be safe.
When can interest rates change now?
Significantly, the review of interest rates of post office savings schemes will now be done at the end of September 2021. Then the interest rates for the October-December quarter of 2021 will be decided. The interest earned on post office savings schemes is reviewed every quarter. The new quarter is going to start from today, so the rates were announced yesterday itself.
How interest rates are fixed
As we mentioned, the interest rates offered on small savings schemes are reviewed by the government every three months. The formula for fixing the interest rates of small savings schemes was given by the Shyamala Committee. The committee had recommended that the interest rate on various schemes should be between 0.25 per cent and 1 per cent higher than the yield of government bonds of similar maturity.
