The Ministry of Finance (MoF) has notified the post office interest rate for the period April to June 2021 (1st Quarter of Financial Year 2021-2022) on April 31, 2021.
After a quick rollback, the Government of India has kept the post office interest rate 2021 unchanged for the first quarter of the current financial year 2021-2022. This is the 4th quarter in a row that the government has not changed the post office savings interest rate.
This means the Indian post office interest rate from 1st April to 30th June 2021 shall remain unchanged from those notified for the fourth quarter of FY 2020-2021. The decision of keeping the post office deposit rates unchanged will bring some relief to the fixed-income investors.
Let us take a look at the new interest rates on post office schemes from April 1, 2021.
Indian Post Office Scheme
PPF, NSC (National Savings Certificates), Recurring Deposit, MIS, Senior SCSS, Sukanya Samriddhi Yojana, and POTD are the best post office deposit scheme. Millions of fixed-income investors invest their money in these postal saving schemes.
The post office interest rate on RD account, NSC, Term Deposit, MIS, KVP, and SCSS remain the same till the date of maturity when you invest in these post office investment schemes. Here, you need to note that the interest rate for the PPF scheme will change every quarter.
Timetable for change in Interest Rates
The post office interest rate are announced every quarter based on the yield on government bonds since April 1, 2016. Below is the timetable for change in India post interest rates.
|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 interest rates for Indian post office saving schemes are announced for the 1st quarter of the financial year 2021-22 starting April 1, 2021, and ending on June 30, 2021. The government kept the post office interest rate unchanged for the April-June quarter of the financial year 2021-22.
Click here to read the office memorandum dated 01.04.2021 issued by the Department of Economic Affairs (Budget Division), Ministry of Finance.
Post Office Interest Rate 2021
Here is a quick snapshot of the post office current interest rate for the April to June quarter of the financial year 2021-22.
1. The rate of interest on the Senior Citizens Savings Scheme (SCSS) shall remain unchanged at 7.4%. Quarterly compounding and paid every quarter.
2. The Sukanya Samriddhi Yojana will continue to offer an interest rate of 7.6%. Annually compounding and paid on maturity.
3. The National Savings Certificate (NSC) will also continue to earn an interest rate of 6.8%. Annually compounding but payable at maturity.
4. The rate of interest on PPF (Public Provident Fund) shall remain unchanged at 7.1%. Compounded annually and paid on maturity. The PPF scheme matures in 15 years.
5. The interest rate on the Kisan Vikas Patra scheme is retained at 6.9%. Annually compounded and paid on maturity. The KVP scheme will now double your money in 124 months.
6. The interest rate for the 5-year Post Office Monthly Income Scheme (MIS) will remain unchanged at 6.6%. Compounded monthly and paid.
7. Five years RD Account will continue to earn an interest rate of 5.8%. Compounded quarterly.
8. The POTD scheme of 1 to 5 years period will continue to offer an interest rate of 5.5% to 6.7% p.a. Quarterly compounding. This 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 post office savings account interest rate shall remain constant at 4%. Compounded annually.
Post Office Latest Interest Rates
Below you will find the post office interest rates table 2021 (April 1, 2021, to June 30, 2021).
Post Office Interest Rate Table 2021
|Scheme Name||Rate of Interest from 01/04/2021 to 30/06/2021||Rate of Interest from 01/01/2021 to 31/03/2021|
|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:
- Click here for Interest rates for post office small savings scheme January–March 2021
- To know the Interest Rates for India post savings scheme October-December 2020, click here
- Click here for latest Interest Rates for Indian post office scheme July-September 2020
- Interest rates for Indian post office scheme April to June 2020, click here
- Click here for latest post office savings account interest rate January to March 2020
The Government of India kept the post office interest rate unchanged for the first quarter (April to June) of the financial year 2021-22. This will bring some relief to the millions of Indians who invest in these post office investment schemes.
With no change in post office interest rate 2021, some postal saving schemes will remain a good investment option for investors. Indian post office saving schemes are government-backed and offer the safety and security of your invested capital.
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