The finance ministry has revised the interest rate for small savings (post office) schemes for the financial year 2014-15.  The new rates will come into effect from 1 April 2014.

Interest Table for Post Office Schemes

InstrumentFY-2013-14FY-2014-15Min & Max. Limit
Saving Account4.00%4.00%Rs. 20 for opening
Recurring Deposit (RD)8.30%8.40%Min Rs. 10 per month or any amount multiply by 5
SCSS - Senior Citizen Saving Scheme9.20 %9.20 %Only one Deposit in account in multiply of Rs. 1000 Max Limit 15 Lakh
MIS 5 year8.40%8.40%In Multiply of 1500 Max Limit 4.50 lakh in single a/c & 9.00 lakh in Joint a/c
NSC - 5 Yr8.50 %8.50 %Min Rs. 100 - No max Limit
NSC - 10 Yr8.80 %8.80 %Min Rs. 100 - No max Limit
SCSS - 5 yr9.20 %9.20 %multiply of Rs. 1000 - Max Limit Rs. 15 lakh
Time Deposit - 1 Yr & 2 yr8.20 %8.40 %Min Rs. 200 & in multiply thereof.
Time Deposit 3 Year8.308.40 %Min Rs. 200 & in multiply thereof.
Time Deposit 5 year8.40%8.50 %Min Rs. 200 & in multiply thereof.
PPF - Public Provident Fund8.70 %8.70 %Min Rs. 500 Max Rs. 1 lakh in a financial year


Recurring Deposit Account (RD)

Any Individual can open this account.

Part withdrawal facility available.

Premature closer allow after 3 years.

Time Deposit

Post office Time Deposit is Fixed Deposit where you put your money for fixed tenor. The interest is compounded Quarterly and paid annually.  Any person can open this account. You can also open joint account, or one in minor child holder.

If deposit is withdrawal after one year from the date of deposit, interest will be calculate 1% less.

Minimum Deposit for this account Rs. 200. There is no maximum limit.

Tax Implication

Investment in 5 year Fixed Deposit qualified for section 80C  benefit of the Income Tax Act.   Interest that you earn is taxable. i.e. If you invest 50,000 in 5 year FD then you can claim 50000 under 80C. Interest on that Investment is taxable.

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