INSUBCONTINENT EXCLUSIVE:
The fixed deposit interest rates of post offices are as high as 7.4 per cent per annum
Post offices offer banking services as well as saving schemes
They offer the option of opening fixed deposit (FD) accounts, public provident funds (PPF) and Kisan Vikas Patra (KVP), among other saving
schemes, as stated on India Post's website indiapost.gov.in
The fixed deposit interest rates of post offices are as high as 7.4 per cent on a five-year long tenure FD
It is even higher than the interest rate of 6.75 per cent offered by the largest lender of the country, State Bank of India (SBI) on an FD
account of the same tenor.Given below is a comparison of fixed deposit (FD) accounts, public provident funds (PPF) and Kisan Vikas Patra
(KVP):Post office fixed deposit accountThe minimum amount required to open a fixed deposit with post office is Rs 200
The interest is payable annually but calculated quarterly
account6.9%5 year account7.4%Post office public provident fundsAn individual can open a PPF account with Rs 100 but has to deposit a minimum
of Rs 500 in a financial year a and maximum of Rs 1,50,000
Interest earned on PPF is completely tax-free
Deposits in PPF accounts qualify for deduction from income under Section 80C of the Income Tax (I-T) Act
Withdrawal from PPF accounts is permissible every year from 7th financial year from the year of opening account
The interest rate on PPF deposits is 7.6 per cent per annum (compounded yearly).Post office Kisan Vikas PatraA KVP certificate can be
purchased by an adult for himself or on behalf of a minor or by two adults
KVP certificates require a minimum of Rs 1,000 and in multiples of Rs 1,000
However, there is no maximum limit
A 7.3 per cent interest rate is compounded annually on KVP certificates
The amount invested grows doubles in a time span of 118 months (9 years and 10 months).