Interest Rates on Post Office Schemes October 2019

Post Office Schemes

Interest Rates on Post Office Schemes October 2019

Post Office Schemes Interest Rates October-December 2019

Introduction

In this article you will find the Interest Rates on Post Office Schemes for Q3 FY2019-20 (October-December). These interest rates are as on last updated by the Department of Post.

Postal savings systems provide depositors who do not have access to banks a safe and convenient method to save money. Many nations operate banking systems involving post offices to promote saving money among the poor. Post Office, the Department of Post (India Post) offers many services to the Indian population.

Schemes under Post Office :

Schemes under Post Office
Schemes under Post Office

One can open an account in these schemes at any head or general post office.

The interest rate of POST Office schemes are set by the government at the start of each quarter in a financial year. They are aligned with the government security rates. But, the interest rate will remain unchanged for the investor (depositor) once the deposit is made.

Financial Planning Knowledge Bank by Invest Yadnya
Financial Planning Knowledge Bank by Invest Yadnya

1. Post Office Recurring Deposit (PORD)

  • The interest is compounded every quarter, which ensures that a sum of money multiplies by the time it matures. Interest rates on recurring deposits are fixed when you open the deposit.
  • Currently this RD scheme offers an interest rate of 7.2% per annum for Q3 FY2019-20 (October-December) which is compounded quarterly.
Post Office Recurring Deposit (RD) Interest Rates
Post Office Recurring Deposit (RD) Interest Rates

2. Post Office Time Deposit (POTD)

  1. Interest is payable annually but is calculated quarterly.
  2. The following are the different interest rates for different durations:-
  • 1 year – 6.9% per annum
  • 2 years – 6.9% per annum
  • 3 years – 6.9% per annum
  • 5 years – 7.7% per annum
 1 Year Post Office Time Deposit
1 Year Post Office Time Deposit
 2 Years Post Office Time Deposit
2 Years Post Office Time Deposit
   3 Years Post Office Time Deposit
3 Years Post Office Time Deposit
   5 Yeasr Post Office Time Deposit
5 Years Post Office Time Deposit

3. Post Office Monthly Income Scheme (POMIS)

  • The interest rates are higher compared to other fixed income investments like FD. Interest earned is payable monthly. These returns are called as fixed monthly income.
  • Interest rates on POMIS are 7.6% per annum for Q3 FY2019-20 (October-December), remained unchanged.
Post Office Monthly Income Scheme Interest Rates
Post Office Monthly Income Scheme Interest Rates

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