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 February, 2012.

Postal Deposit SchemeInterest Rate(%)Minimum Investment(Rs.)Maximum Investment(Rs.)FeaturesTax Relaxation
Monthly Income Scheme8.50 1,500Single 4.5 Lakh Joint 9 LakhTenure: 5 Years Monthly ReturnsNil
Recurring Deposit8.40 10No LimitTenure: 5 Years Nil
Savings Account4.0050No LimitRs. 10,000
Interest Tax Free
Nil
National Savings Certificate (5 yr)8.60100No LimitNo TDS80C
National Savings Certificate (10 yrs)8.90100No LimitTDS applicable80C
Time Deposit8.20-8.50200No LimitAvailable in 1, 2, 3, 5 yrs80C
Senior Citizens' Saving Scheme9.30 payable quartely1,00015 LakhTenure: 5 Years
Minimum Age 60yrs
80C
Public Provident Fund8.805001 Lakh a year15-year term;
Tax-Free Returns
80C
Employees' Provident Fund8.60--Till Retirement
80C
Rate compounded – (a) quarterly, (b) yearly, (c) half yearly


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

Last Updated on 2/8/2012