The government of India revised the interest rates on Post Office Small Savings Schemes effective from 1st January, 2019. The revised interest rates on some of the Small Savings Schemes are as under:
| Post Office Instrument | Rate of Interest w.e.f. 01.01.2019 |
| 1 year term deposit | 7.00% |
| 2 year term deposit | 7.00% |
| 3 year term deposit | 7.00% |
| 5 year term deposit | 7.80% |
Despite the revision, the top Indian banks are offering higher interest rates on deposits for select tenures. The below table offers a comparative analysis of the interest rates offered by the Post Office against those offered by top Indian banks.
| Institution | 1 year term deposit | 2 year term deposit | 3 year term deposit | 5 year term deposit |
| Post Office | 7.00% | 7.00% | 7.00% | 7.80% |
| State Bank of India | 6.80% | 6.80% | 6.80% | 6.85% |
| HDFC Bank | 7.30% | 7.30% | 7.40% | 7.25% |
| ICICI Bank | 6.90% | 7.10% | 7.50% | 7.25% |
| Axis Bank | 7.30% | 7.50% | 7.25% | 7.25% |
| Canara Bank | 7.00% | 6.70% | 6.20% | 6.20% |
Note: Interest Rates as on 18th March 2019.
Some of India’s major banks continue to outshine the Post Office, except for a five year tenure. In terms of safety, deposits with the Post Office count as government schemes and hence have a government guarantee. Bank deposits while relatively safe, only have a formal deposit guarantee up to Rs 1 lakh under the DICGC (Deposit Insurance Credit Guarantee Corporation).
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