Postal Deposit Rates in India

Postal Deposits are the best and risk free source of investment. Postal Deposits are popular in mostly rural areas and among retired people who lives alone without children. People with no or low risk appetite love to invest in post office schemes. Find below the top five Fixed Deposit schemes available in as on November, 2013.

Postal Deposit SchemeInterest Rate(%)Minimum Investment(Rs.)Maximum Investment(Rs.)FeaturesTax Relaxation
Monthly Income Scheme8.401500Single 4.5 Lakh Joint 9 LakhTenure: 5 Years Monthly ReturnsNil
Recurring Deposit8.3010No LimitTenure: 5 Years Nil
Savings Account4.0050No LimitRs. 10,000 Interest Tax FreeNil
National Savings Certificate (5 yr)8.50100No LimitNo TDS80C
National Savings Certificate (10 yrs)8.80100No LimitTDS applicable80C
Time Deposit8.20-8.40200No LimitAvailable in 1, 2, 3, 5 yrs80C
Senior Citizens' Saving Scheme9.20 payable quartely100015 LakhTenure: 5 Years Minimum Age 60yrs80C
Public Provident Fund8.705001 Lakh a year15-year term; Tax-Free Returns80C
Employees' Provident Fund8.50--Till Retirement80C

Sec.80C benefit: Investments up to ` 1 lakh in specified securities(maximum of ` 70000 in PPF)qualify for deductiom.

Last Updated on : 26/11/2013