Interest Rates for Small Saving Schemes for October to December 2019

Surprisingly, the government of India has not reduced the interest rates on Small Saving Schemes for the period October 2019 to December 2019. This means the interest rates for post office savings schemes from 1st October to 31st December 2019 will remain the same as they were from 1st July to 31st September 2019.

The post office investments like Public Provident Fund), National Savings Certificate, Senior Citizen Savings Scheme, Kisan Vikas Patra, Sukanya Samriddhi Account, Recurring Deposit Account, Post Office Time Deposit, etc. are very popular investment options among conservative investors.

What are the latest interest rates for small saving schemes for October to December 2019? Which is the highest interest rate on post office saving schemes? In this post, let us take a look at the interest rates for Small Saving Schemes for October to December 2019.

Interest Rates Schedule for Post Office Small Saving Schemes

Earlier the rate of interest on post office saving schemes used to be announced yearly once. Since 1st April 2016, the government of India announces the rate of interest on small savings schemes on a quarterly basis. The quarterly interest rates schedule for post office saving schemes given in the table below.

S. No.	Rates of Interest would be effective for the quarter	The date on which it will be notified
1	April to June (First Quarter)	15th March
2	July to September (Second Quarter)	15th June
3	October to December (Third Quarter)	15th September
4	January to March (Fourth Quarter)	15th December

The government notified the rate of interest for post office saving schemes for the third quarter of FY 2019-2020 starting from October 1, 2019 and ending on December 31, 2019.

Interest Rates for Small Saving Schemes for the period October to December 2019

This time, the government has not changed the rate of interest for post office saving schemes for the third quarter of the financial year 2019-2020. This means that the rates of interest of post office schemes like NSC and PPF will remain constant for the third quarter of the financial year 2019-2020.

Rate of Interest for Small Saving Schemes for October to December 2019

1. The Senior Citizens Saving Scheme will continuously fetch the highest interest rate of 8.6%.

2. The 5 years NSC (National Savings Certificate) will fetch an interest rate of 7.9% p.a.

3. The PPF scheme will fetch an interest rate of 7.9% p.a.

4. The girl child savings scheme Sukanya Samriddhi Account will now fetch an interest rate of 8.4% p.a.

5. Kisan Vikas Patra will continuously fetch an interest rate of 7.6% and mature in 113 months.

6. The Recurring Deposit Account (5 years) will offer an interest rate of 7.2% p.a.

7. The five years Monthly Income Account will fetch an interest rate of 7.6% p.a.

8. Post Office Time Deposit of 1 to 5 years interest rates will be as:

The interest rate for I year Time Deposit is 6.9%

The interest rate for 2 year Time Deposit is also 6.9%

The interest rate for 3 year Time Deposit is also kept at 6.9%

The interest rate for 5 years Time Deposit is 7.7%

9. The interest rate for the Post Office Savings Account will remain constant at 4%.

Interest Rates for Small Saving Schemes for October to December 2019

Scheme Name	The rate of Interest from 01/10/2019 to 31/12/2019	The rate of Interest from 01/07/2019 to 30/09/2019	Frequency of Compounding
Savings Account	4%	4%	Annually
Time Deposit - 1 Year	6.9%	6.9%	Quarterly
Time Deposit - 2 Years	6.9%	6.9%	Quarterly
Time Deposit - 3 Years	6.9%	6.9%	Quarterly
Time Deposit - 5 Years	7.7%	7.7%	Quarterly
5 Year Recurring Deposit	7.2%	7.2%	Quarterly
Sukanya Samriddhi Account Scheme	8.4%	8.4%	Annually
Kisan Vikas Patra	7.6%	7.6%	Annually
PPF Scheme	7.9%	7.9%	Annually
5 Year National Savings Certificate	7.9%	7.9%	Annually
5 Year Post Office Monthly Income Account	7.6%	7.6%	Monthly and paid
5 Year Senior Citizens Savings Scheme	8.6%	8.6%	Quarterly and paid

Click here to read the announcement from the Department of Economic Affairs, Ministry of Finance about interest rates for small saving schemes.

Conclusion

This time, the government has not changed the rate of interest on small saving schemes for the second quarter of the financial year 2019-2020. Therefore, these post office saving schemes still offer the highest rate of interest as compared to bank fixed deposit schemes. Moreover, these schemes are backed with a government guarantee, therefore you can consider investing in these schemes.

Also, read: Post Office Monthly Income Account

Also, read: Sukanya Samriddhi Account

Also, read: SBI Recurring Deposit Account

Also, read: Things you should know about PPF

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