Interest Rates for Small Saving Schemes for July to September 2018

Government of India has announced the interest rate for Small Saving Schemes like PPF, NSC, Sukanya Samriddhi Account, KVP, Post Office Time Deposit and Post Office Recurring Deposits and Senior Citizen Savings Scheme for the period July 2018 to September 2018 (Second Quarter of Financial Year 2018-2019).

Interest Rates Schedule 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 w.e.f. April 2016. The quarterly interest rates for small saving schemes schedule is shown in the table below.

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

Government announced the Interest Rates for Small Saving Schemes for the period July 2018 to September 2018 (Second Quarter of Financial Year 2018-2019).

Interest Rates for Small Saving Schemes for Second Quarter of FY 2018-19

This time too, the government has decided to maintain the same interest rates for Second Quarter of financial year 2018-19 (July 1, 2018 to September 30, 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 July 2, 2018.

Interest Rates for Small Saving Schemes for July to September 2018

1. The SCSS (Senior Citizens Saving Scheme) would offer the interest rate of 8.3%.

2. The interest rates for Post Office Savings Account have been kept at 4%.

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

4. PPF (PublicProvident Fund) will also offer an interest rate of 7.6%.

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

6. Sukanya Samriddhi Account will offer the interest rate of 8.1% annually.

7. Post Office Monthly Income Scheme (MIS) will fetch an interest rate of 7.3%.

8. Post Office Time Deposits of 1-5 years will offer an interest rate:

Time Deposit of 1 Year - 6.6%

Time Deposit of 2 Years - 6.7%

Time Deposit of 3 Years – 6.9%

Time Deposit of 5 Years – 7.4%

9. The 5 years RD Account will fetch an interest rate of 6.9%.

Interest Rates for Small Saving Schemes for July to September 2018

Scheme Name	Rate of Interest from 1/7/2018 to 30/9/2018	Rate of Interest from 1/4/2018 to 30/6/2018	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
Sukanya Samriddhi Account	8.10%	8.10%	NA
Kisan Vikas Patra (KVP)	7.30%	7.30%	Annually
Public Provident Fund	7.60%	7.60%	Annually
National Savings Certificate 5 Years	7.60%	7.60%	Annually
PO Monthly Income Account (MIS)	7.30%	7.30%	Annually
Senior Citizens Savings Scheme	8.30%	8.30%	NA

Note that the Interest Rates for Small Saving Schemes like Post OfficeTime Deposits, RD Account, Post Office Monthly Income Account, KVP, NSC and SCSS are locked-in so the interest offered on the date of investment will remain same for the entire tenure on investment. The interest rates for PublicProvident Fund and Sukanya Samriddhi Account are applicable as declared every quarter irrespective of the time of opening of the account.

Post Office small saving schemes offer highest interest rates as compared to other saving schemes. You can consider investing in these schemes if your risk appetite is low. Small saving schemes like National Savings Certificate and Public Provident Fund have become very popular tax saving instruments for Indians.

Also read: Post Office Recurring Deposit Account

Also read: NSC (National Saving Certificate)

Also read: Public Provident Fund (PPF) - A popular saving scheme 

Also read: Post Office Monthly Income Scheme Account (MIS) 

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