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. 01.07.2019 |
| 1 year term deposit | 6.90% |
| 2 year term deposit | 6.90% |
| 3 year term deposit | 6.90% |
| 5 year term deposit | 7.70% |
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 | 6.90% | 6.90% | 6.90% | 7.70% |
| State Bank of India | 6.25% | 6.25% | 6.25% | 6.25% |
| HDFC Bank | 6.30% | 6.30% | 6.40% | 6.30% |
| ICICI Bank | 6.35% | 6.60% | 6.60% | 6.60% |
| Axis Bank | 6.45% | 6.85% | 6.75% | 6.75% |
| Canara Bank | 6.00% | 6.00% | 5.75% | 5.50% |
Note: Interest Rates are subject to change.
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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I spent a lot of time to find something similar to this
We were nri in gulf countries since 1987 and have returned back to india for good. We want to know clearly what we have to to fulfill both fema and rib (tax). We do not have any deals with any foreign countries. We have only accounts in Indian banks ( foreign currency, Indian rupee, equities). We want to maintain savings in present formats as nri or equivalent Resident but not ordinary resident (RNRO) till we are eligible for the same ( I feel for three years based on my number of years abroad – 32.5 years. Please advise.