Interest Rates for Small Saving Schemes for April to June 2018

Interest Rates for Small Saving Schemes for April to June 2018

The government announced the interest rate for Small Saving Schemes like PPF, Sukanya Samriddhi Account, KVP, NSC, Post Office Time Deposit and Post Office Recurring Deposits and Senior Citizen Savings Scheme for the period April 2018 to June 2018 (First Quarter of Financial Year 2018-2019).

Interest Rates for Small Saving Schemes

Earlier Government used to announce Interest Rates for Small Saving Schemes on yearly once. But now Government announces Interest Rates for Small Saving Schemes every quarter effective from April 2016. The table below shows the quarterly Interest Rates for Small Saving Schemes reset schedule:

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 Rates for Small Saving Schemes from April 2018 to June 2018.

Also read: Public Provident Fund (PPF) | 15 Lesser known facts about PPF account

Interest Rates for Small Saving Schemes for First Quarter of FY 2018-19 (April to June 2018)

After reducing the interest rates for small saving schemes by 0.2% except for Senior Citizens Saving Scheme in the 4^th Quarter of the financial year 2017-18 (January to March 2018), Government of India has decided to maintain the same interest rates for the next quarter April to June 2018. The announcement about this was made by the Department of Economic Affairs (Budget Division), Ministry of Finance via an Office Memorandum – “Revision of interest rates for Small Saving Schemes” on March 28, 2018.

Interest Rates for Small Saving Schemes for April to June 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 will fetch an interest rate of 7.6%.

4. Public Provident Fund will also offer an interest rate of 7.6%.

5. Kisan Vikas Patra will fetch an interest rate of 7.3% and mature in 118 months.

6. The girl child savings scheme, Sukanya Samriddhi Account will offer 8.1% 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 an 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%.

Interest Rates for Small Saving Schemes for April to June 2018

Scheme Name	Rate of Interest from 1/4/2018 to 30/6/2018	Rate of Interest from 1/1/2018 to 31/03/2018	Frequency of Compounding
Post Office Savings Account	4%	4%	NA
Time Deposit 1 Year	6.60%	6.60%	Quarterly
Time Deposit 2 Years	6.70%	6.70%	Quarterly
Time Deposit 3 Years	6.90%	6.90%	Quarterly
Time Deposit 5 Years	7.40%	7.40%	Quarterly
Recurring Deposit 5 Years	6.90%	6.90%	Quarterly
PO Monthly Income Account (MIS)	7.30%	7.30%	NA
Kisan Vikas Patra (KVP)	7.30%	7.30%	Annually
National Savings Certificate 5 Years	7.60%	7.60%	Annually
Public Provident Fund	7.60%	7.60%	Annually
Sukanya Samriddhi Account	8.10%	8.10%	Annually
Senior Citizens Savings Scheme	8.30%	8.30%	NA

Notable points - Interest Rates for Small Saving Schemes:

1. The Interest Rates for Small Saving Schemes like Post Office Time Deposits, Recurring Deposits, Post Office Monthly Income Account, Kisan Vikas Patra, National Savings Certificate and Senior Citizen SavingsScheme 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 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 schemes 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.

Also read: 7 Investments for tax free income in India
Also read: SBI PPF Account | How to open PPF account in SBI?

Also read: National Savings Certificate (NSC)
Also read: These 6 post office saving schemes gives more interest than saving account

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Interest Rates for Small Saving Schemes for April to June 2018