The finance ministry has revised the interest rate for small savings (post office) schemes for the financial year 2015-16. The new rates will come into effect from 1 April 2015.
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.
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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.
Interest Table for Post Office Schemes 2015
| Post Office Scheme | Interest Rate | Compound Frequency |
|---|---|---|
| Saving Account | 4.00% | Annually |
| SCSS -Senior Citizen Saving Scheme | 9.30% | Quarterly |
| MIS | 8.40% | Quarterly |
| RD Account | 8.40% | Annually |
| Sukanya Samrudhi | 9.20% | Annually |
| PPF | 8.70% | Annually |