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Big news for Post Office Customers! New Interest Rates Came into effect from October 1; Know the Changes & Important Details

Pronami Chetia
Pronami Chetia

Post Office Schemes: Have you ever thought of saving and investing in Post Office? If not then do think of it as there are many beneficial schemes in the post office to keep your money safe and give more profits in return than any other sources. If you too have invested in Post Office schemes, then there is good news for you. There has been no change this time in the Post Office Small Saving Schemes interest rates (Post Office Interest Rates 2020).

The government has not made any changes in the interest rates of schemes like Provident Fund (PPF), National Saving Certificate (NSC) etc. from October to December. Not only do you get good returns in the post office, but your money is also completely safe. In such a situation, you can invest without any risk.

Circular issued

The Finance Ministry issued a circular on Wednesday and informed about this. The circular said that the interest on PPF will continue to be 7.10 per cent and Senior Citizens Savings Scheme (SCSS) at 7.40 per cent. Similarly, the post office time deposit will continue to get interest ranging from 5.5 percent to 6.7 percent.

Review is done every quarter

Moreover, you need to know that every three months the post office reviews the interest rates. Thereafter, on the first date, new rates apply for the next quarter. During this review, interest rates may be cut or may remain constant.

Apart from this, the government can also increase interest rates. After this, the interest rates will now be reviewed at the end of December 2020. Then the interest rates for the January-March quarter of 2021 will be decided.

Post Office FD

Post Office Fixed Deposit: Post office fixed deposit, investors will get interest at the rate of 5.8%. The Post Office Fixed Deposit has an interest rate of 5.5% for 1-3 years. The 5-year Fixed Deposit has a 6.7% interest rate. Apart from this, investors will also get tax exemption under Section 80C of Income Tax Act, 1961 on 5 years Fixed Deposit in Post Office.

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