The Ministry of Finance (MoF) has notified the interest rates for Post Office Saving Scheme for the period January to March 2021 (4th Quarter of Financial Year 2020-2021) on December 31, 2020.
As expected, the Government of India has kept the post office savings interest rates unchanged for the fourth quarter of the current financial year 2020-2021. This is the 3rd quarter in a row that the government has not changed interest rates on various small savings schemes.
This means the small saving interest rates from 1st January to 31st March 2021 shall remain unchanged from those notified for the third quarter (October to December). The decision of keeping the interest rates unchanged will bring some relief to the fixed-income investors.
Let us take a look at the Post Office Saving Scheme Interest Rates from January 1, 2021.
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Indian Post Office Saving Schemes
PPF, National Savings Certificates, RD scheme, MIS, Senior Citizen Saving Scheme, Sukanya Samriddhi Yojana, and POTD are the best post office saving scheme. Millions of fixed income investors invest their money in these popular saving instruments.
Also Read: PPF (Public Provident Fund) | PPF Account
Also Read: Post Office Recurring Deposit Account – Post Office RD Account
The rates of interest for NSC, RD account, KVP, Term Deposit, MIS, and SCSS remain the same till the date of maturity when you invest in these post office small savings. However, the rate of interest for the Public Provident Fund (PPF) scheme will change every quarter.
Also Read: Senior Citizen Savings Scheme (SCSS): Features, Benefits, Eligibility & Interest Rate
Also Read: Post Office Time Deposit Account (POTD): Interest Rate, Features & Benefits
Timetable for change in Interest Rates
The post office savings interest rates are announced every quarter based on the yield on government bonds since April 1, 2016. Below is the timetable for change in interest rates for all post office small saving schemes.
| S. No. | Quarter for which interest rates would be effective | The date on which it will be notified |
| 1 | First Quarter (April to June) | 15th March |
| 2 | Second Quarter (July to September) | 15th June |
| 3 | Third Quarter (October to December) | 15th September |
| 4 | Fourth Quarter (December to March) | 15th December |
As per the schedule, the small saving schemes interest rates are announced for the 4th quarter of the financial year 2020-21 starting January 1, 2021, and ending on March 31, 2021. The government kept the small saving rates unchanged for the January-March quarter of the financial year 2020-21.
Click here to read the office memorandum dated 30.12.2020 issued by the Department of Economic Affairs (Budget Division), Ministry of Finance.
Latest Post Office Saving Schemes Interest Rates
Here is a quick snapshot of the interest rate on various small savings schemes for the January to March quarter of the financial year 2020-21.
1. The Senior Citizens Savings Scheme (SCSS) will continue to offer an interest rate of 7.4%. Quarterly compounding and paid every quarter.
2. The rate of interest on Sukanya Samriddhi Yojana (SSJ) shall remain unchanged at 7.6%. Annually compounding and paid on maturity.
3. The interest rate on the National Savings Certificate will remain unchanged at 6.8%. Annually compounding but payable at maturity. Also Read: National Savings Certificate (NSC): Interest Rate, Features & Benefits
4. The Public Provident Fund (PPF) scheme will continue to earn an interest rate of 7.1%. Compounded annually and paid on maturity. This popular tax saving scheme matures in 15 years.
5. The revised interest rate of Kisan Vikas Patra (KVP) is retained at 6.9%. Annually compounded and paid on maturity. The KVP scheme will now double your money in tenure of 124 months.
6. The revised interest rate for the 5-year Post Office Monthly Income Scheme is retained at 6.6%. Compounded monthly and paid. Also Read: Post Office Monthly Income Scheme (MIS) Account
7. Five years of Recurring Deposit Account will continue to offer an interest rate of 5.8%. Compounded quarterly.
8. Post Office Time Deposit Scheme of 1 to 5 years period will continue to earn an interest rate of 5.5% to 6.7% p.a. Quarterly compounding. POTD scheme is similar to fixed deposits offered by banks. Interest rates for 1 to 3 year Post Office Term Deposit are 5.5% p.a. and 6.7% p.a. for a 5-year term deposit.
9. The rate of interest on Post Office Savings Account shall remain constant at 4%. Compounded annually.
Latest Post Office Savings Interest Rates
In the below table, you will find the latest post office saving schemes interest rates (January 1, 2021, to March 31, 2021).
| Scheme Name | Rate of Interest from 01/01/2021 to 31/03/2021 | Rate of Interest from 01/10/2020 to 31/12/2020 |
| Post Office Savings Account | 4% | 4% |
| 1 Year Time Deposit | 5.50% | 5.50% |
| 2 Years Time Deposit | 5.50% | 5.50% |
| 3 Years Time Deposit | 5.50% | 5.50% |
| 5 Years Time Deposit | 6.70% | 6.70% |
| 5 Years Recurring Deposit (RD) | 5.80% | 5.80% |
| 5 Years Monthly Income Account | 6.60% | 6.60% |
| Kisan Vikas Patra (KVP) Interest | 6.90% | 6.90% |
| 5 Years National Savings Certificate (NSC) | 6.80% | 6.80% |
| Public Provident Fund (PPF) | 7.10% | 7.10% |
| Sukanya Samriddhi Yojana | 7.60% | 7.60% |
| Senior Citizens Savings Scheme | 7.40% | 7.40% |
You can also view the earlier quarter’s interest rate in my earlier posts:
- Interest Rates for Indian Post Office Saving Schemes October-December 2020
- Interest Rates for Small Savings Scheme July-September 2020
- Latest Small Saving Interest Rates April to June 2020
- Latest Small Saving Schemes Interest Rates January to March 2020
Final Thoughts
The Government of India kept the post office saving scheme interest rates unchanged for the fourth quarter (January to March) of the financial year 2020-21. This will bring some relief to the millions of Indians who invest in these popular schemes.
With no change in small saving interest rates, some post office schemes will remain a good investment option for investors. These schemes are government-backed and offer the safety and security of your invested capital.
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