Small Saving Schemes Interest Rates for January to March 2018

Small Saving Schemes Interest Rates for January to March 2018

Government of India announced the interest rate for small saving schemes like PPF (Public Provident Fund), Sukanya Samriddhi Account, KVP (Kisan Vikas Patra), NSC (National Savings Certificate), Post Office Time Deposit, Recurring Deposit and Senior Citizen Savings Scheme for the period January 2018 to March 2018 (4^th Quarter of FY 2017-2018). Earlier Government used to announce these interest rates on yearly once. But now Government announces these interest rates every quarter effective from April 2016.

Quarterly Interest Reset Schedule

The table below shows the quarterly interest reset schedule for small savings schemes:

S. No.	Interest rate would be effective for the quarter	Date on which it will be notified
1	1st Quarter (April to June)	15th March
2	2nd Quarter (July to September)	15th June
3	3rd Quarter (October to December)	15th September
4	4th Quarter (December to March)	15th December

As per the above schedule, Government of India announced the interest rate applicable to all small savings schemes from January 2018 to March 2018.

Small Saving Schemes Interest Rates for 4^th Quarter of FY 2017-18 (January to March 2018)

The interest rates for small saving schemes have been reduced by 0.2% except for Senior Citizens Saving Scheme for 4^th Quarter of FY 2017-18 (January to March 2018).

1. There is no change in interest rates for Senior Citizens Saving Scheme and it would offer the interest rate of 8.3%.

2. There is also no change in interest rates for Post Office Savings Account and it has been kept at 4%.

3. National Savings Certificate (NSC) will fetch an interest rate of 7.6%.

4. Public Provident Fund (PPF) will also offer a lower interest rate of 7.6%.

5. Kisan Vikas Patra (KVP) will fetch an interest rate of 7.3% and now mature in 118 months rather than in 115 months earlier.

6. The girl child savings scheme, Sukanya Samriddhi Account will offer 8.1% from existing 8.3% annually.

7. The Post Office Monthly Income Account will offer an interest rate of 7.3%.

8. Time Deposits of 1-5 years will fetch a lower interest rate:

Time Deposit 1 Year - 6.6%

Time Deposit 2 Years - 6.7%

Time Deposit 3 Years – 6.9%

Time Deposit of 5 Years – 7.4%

9. The five-year Recurring Deposit will offer an interest rate of 6.9%.

Small Saving Schemes Interest Rates for January to March 2018

Scheme Name	Rate of Interest from 1/1/2018 to 31/3/2018	Rate of Interest from 1/10/2017 to 31/12/2017	Frequency of Compounding
Post Office Savings Account	4%	4%	NA
Time Deposit 1 Year	6.60%	6.80%	Quarterly
Time Deposit 2 Years	6.70%	6.90%	Quarterly
Time Deposit 3 Years	6.90%	7.10%	Quarterly
Time Deposit 5 Years	7.40%	7.60%	Quarterly
Recurring Deposit 5 Years	6.90%	7.10%	Quarterly
PO Monthly Income Account (MIS)	7.30%	7.50%	NA
Kisan Vikas Patra (KVP)	7.30%	7.50%	Annually
National Savings Certificate 5 Years	7.60%	7.80%	Annually
Public Provident Fund	7.60%	7.80%	Annually
Sukanya Samriddhi Account	8.10%	8.30%	Annually
Senior Citizens Savings Scheme	8.30%	8.30%	NA

Notable points

1. The interest rates for Post Office Time Deposits, Recurring Deposits, Post Office Monthly Income Account, Kisan Vikas Patra (KVP), National Savings Certificate (NSC) and Senior Citizen Savings Scheme (SCSS) are locked-in so the interest offered on the date of investment will remain same for the entire tenure on investment.

2. The interest rates for Public Provident Fund (PPF) and Sukanya Samriddhi Account are applicable as declared every quarter irrespective of the time of opening of the account.

Small saving schemes offer highest interest rates as compared to other saving scheme and if your risk appetite is low you can consider investing in post office small saving schemes. In fact, NSC and PPF have become very popular tax saving instruments for Indians.

You may also like to read: Things you should know about PPF account
You may also like to read: SBI PPF Account | How to open PPF account in SBI?

You may also like to read: National Savings Certificate (NSC)
You may also like to read: Sukanya Samriddhi Account 

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Small Saving Schemes Interest Rates for January to March 2018