Insider Tips for Getting the Best Post Office Interest Rates

Insider Tips for Getting the Best Post Office Interest Rates

In this day and age where banks and various financial institutions offer different kinds of savings plans and investment options, one often forgets the old classic – post office schemes. These schemes come with ample benefits and competitive interest rates, offering a reliable way to grow one’s savings. This article aims to provide insider tips on how to attain the best interest rate in the post office schemes.

Post office savings schemes have emerged as one of the popular and trusted investment options among Indian savers. These are government-backed schemes, hence they provide guaranteed returns, along with tax benefits under sections 80C, 10(15) and other applicable tax laws.

To start with, it is crucial to understand the various post office savings schemes and the interest rates they offer. As of 1st July 2021, India Post, under the Ministry of Communications, operates nine small savings schemes. The schemes range from savings accounts, fixed deposit accounts, recurring deposit accounts, Senior Citizen Savings Scheme (SCSS), post office Monthly Income Scheme (MIS), National Savings Certificates (NSC), Kisan Vikas Patra (KVP), Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY).

Each scheme comes with different interest rates, tenure, and benefits. For instance, a post office savings account fetches an annual rate of 4.0%, while the 5-year post office fixed deposit offers an annual yield of 6.7%. Similarly, other schemes like PPF and SCSS offer rates of 7.1% and 7.4% respectively.

Now comes the question of how to achieve the best interest rates. Well, here are a few tips:

  1. Invest in long-term schemes: The post office offers higher interest on long-term investment schemes. Thus, schemes like PPF and SCSS, which have longer maturity periods, end up giving you high returns.
  1. Use the fixed deposit interest rates calculator: This is an online tool that automatically calculates the amount of interest you will earn from your fixed deposit with the post office. By using this tool, you can compare the potential return from different durations, and decide which term suits you the most.
  1. Investment Timing: Interest rates in post office schemes are reviewed quarterly by the Indian government. They may increase or decrease based on prevailing economic conditions. Therefore, to maximise profits, it’s beneficial to follow the rate trends carefully and invest when the rates are on the higher side.
  1. Balancing portfolio: Don’t put all your eggs in one basket. Diversify your portfolio and invest in multiple schemes. This way, you will earn decent returns from all, keeping a healthy overall return rate.

In conclusion, post office schemes can potentially offer excellent returns if leveraged properly. However, like any other investment option, it is necessary to thoroughly analyse every aspect of the plan.


The interest rates mentioned are subject to change as per India Post’s policies. Therefore, investors are advised to check the latest rates while investing. Additionally, the investor must gauge all the pros and cons of trading in the Indian financial market.


Post office schemes have always been a reliable and profitable way to invest, especially because they offer competitive interest rates that can be leveraged for substantial returns. This article provided tips for getting the best interest rate in post office investments, such as investing in long-term schemes for higher benefits, making good use of fixed deposit interest rates calculator, tactful timing of investments, and maintaining a balanced investment portfolio. However, as with all financial decisions, these should be taken with due consideration and acquaintance with the ongoing trends and rates in the Indian financial market. Investors are also encouraged to use calculators to predict their expected returns and adjust their investments accordingly.

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