Post Office Schemes Interest Rates July 2019


In this article you will find the Interest Rates on Post Office Schemes. 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, is also known as India Post. It offers many services to the Indian population.

Schemes under Post Office :

Schemes under Post Offfice

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.

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 2nd quarter (July-Sept) FY2019-20 which is compounded quarterly.
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
2 Year Post Office Time Deposit
3 Year Post Office Time Deposit
5 Year 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.
  • From 1st January 2019, interest rates on POMIS are 7.6% per annum for 2nd quarter (July-Sept) FY2019-20.
Post Office Monthly Income Scheme Interest Rates