Post Office Savings Scheme Interest Rate: See how fast your Rs 1,00,000, Rs 2,00,000 investments grow in KVP, Mahila Samman, NSC deposit schemes

Post Office Account Interest Rate, Kisan Vikas Patra (KVP), National Savings Certificate (NSC), Mahila Samman Savings Certificate: National Savings Certificates (NSC), Kisan Vikas Patra certificates and Mahila Samman Savings Certificates are three certificate of deposit (CoD) schemes that offer interest rates to the tune of 7.5-7.7 per cent, according to the India Post website, indiapost.gov.in. Read on to know all about them.

Currently, Kisan Vikas Patra, Mahila Samman Savings and National Savings Certificate deposits grew at the rate of 7.5-7.7 per cent per annum, according to the post office website. | Image: Pexels

Did you know that among the several types of accounts and investment scheme available at designated post office branches across the country are certain certificate schemes - also known as certificate of deposit (CoD) schemes? The Kisan Vikas Patra (KVP) certificates, the National Savings Certificates (NSC) and the Mahila Samman Savings Certificates are three such fixed income financial products that offer guaranteed returns to depositors under different conditions. For the quarter ending June 30, these certificate investment schemes offer interest rates to the tune of 7.5-7.7 per cent, according to the India Post portal, indiapost.gov.in, however the three come with their own unique features. In this article, let's learn all the basic details about these certificate schemes - the Kisan Vikas Patra, the NSC and the Mahila Samman Certificate - that potential depositors will need to plan their deposits.

Feature	NSC	KVP	Mahila Samman
Interest rate for Q1 FY24	7.7%	7.5%	7.5%
Compounding frequency	Annually, payable at maturity	Annually	Quarterly
Minimum investment	Rs 1,000 (in multiples of Rs 100 thereof)	Rs 1,000 (in multiples of Rs 100 thereof)	Rs 1,000 (in multiples of Rs 100 thereof)
Maximum investment	No limit	No limit	Rs 2 lakh
Maturity period	5 years	115 months (amount doubles)	2 years
Who can open account	Adult/guardian on behalf of minor/minor above 10 years old	Adult/guardian on behalf of minor/minor above 10 years old	Woman for self/guardian on behalf of minor girl
(Source: indiapost.gov.in)

To put things into perspective, let's take an example wherein a customer deposits Rs 1 lakh each in the three schemes and completes the full maturity period in each case.

CALCULATIONS

National Savings Certificate (NSC) | How Rs 1 lakh investment grows upon maturity

Given the current interest rate and compounding frequency, an amount of Rs 1 lakh invested in the NSC small savings scheme will grow to become Rs 1,44,903 in the maturity period of five years.

Kisan Vikas Patra (KVP) | How Rs 1 lakh investment grows upon maturity

In the case of investment in the KVP small savings scheme, the deposit will grow to Rs 2 lakh in 115 months - or nine years and seven months.

Mahila Samman Savings Scheme | How Rs 1 lakh investment grows upon maturity

Going by the current interest rate and the applicable compounding frequency, a deposit of Rs 1 lakh will turn into Rs 1,16,022 over the two-year maturity period.

The three varieties of certificate of deposit (CoD) schemes discussed in this article and available at post office branches present investors with attractive fixed income opportunities. While each of the Kisan Vikas Patra (KVP), the NSC, and the Mahila Samman Savings Certificate schemes offers competitive interest rates ranging from 7.5 per cent to 7.7 per cent, they have their own sets of features.

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