Latest Interest Rates for Small Saving Schemes January to March 2019

The government has announced the interest rates for small saving schemes for the period January to March 2019 (4th Quarter of FY 2018-2019). As expected, this time, the government has decided to leave the interest rates for small saving schemes unchanged except for 1-year & 3-year time deposit schemes. The interest rate for 1-year time deposit is increased from 6.9% to 7% and the interest rate for 3-year time deposit is slashed from 7.2% to 7%. Let us take a look at the changes in interest rates applicable from January 1, 2019.

The post office small saving schemes like NSC, PPF, Recurring Deposit Account, Sukanya Samriddhi Account (SSA), SCSS and POTD are very popular among the Indians. The interest rates on post office saving schemes have a fixed locking period except for savings account.

Quarterly Schedule for change in Interest Rates

Every quarter the government announces interest rates for small saving schemes since April 1, 2016. Below table shows the quarterly schedule for change in interest rates for small saving schemes.

S. No.	Quarter	Date on which it will be notified
1	1st Quarter (April – June)	15th March
2	2nd Quarter (July – September)	15th June
3	3rd Quarter (October – December)	15th September
4	4th Quarter (December – March)	15th December

As per the above schedule, the interest rates for small saving schemes are announced for the 4th quarter of the financial year 2018-19 starting January 1, 2019, and ending on March 31, 2019.

Latest Interest Rates for Small Saving Schemes

A quick snapshot of the interest rates on post office small saving schemes for the 4th quarter of the financial year 2018-19 are given below.

1. The highest interest rate is offered on Senior Citizens Saving Scheme – 8.7% per annum (Quarterly compounding and paid).

2. The interest rate for Sukanya Samriddhi Account has been kept at 8.5% p.a. (Compounding frequency is annual).

3. The interest rate for National Savings Certificate (NSC) also kept at 8% p.a. (Annually compounding).

4. Public Provident Fund (PPF) will also offer 8% per annum (Annually compounding).

5. Kisan Vikas Patra (KVP) will offer 7.7% p.a. (Compounded annually and mature in 112 months).

6. Post Office Monthly Income Account will fetch 7.7% per annum (Monthly compounding and paid).

7. The interest rate for 5 years RD Account also kept at 7.3% (Quarterly compounding).

8. Interest rates for Time Deposits of 1-5 years tenure are 7% to 7.8% p.a.: (Compounding frequency is quarterly).

5 Years Time – 7.8% p.a.

3 Years Time Deposit – 7% p.a.

2 Years Time Deposit – 7% p.a.

1 Year Time Deposit – 7% p.a.

9. Interest rate for Savings Account has been kept at 4% p.a. (Annually compounding).

You can read the Office Memorandum issued by Department of Economics Affairs, Ministry of Finance here – “Revision of interest rates for Small Savings Schemes“.

Latest Interest Rates (January 1, 2019, to March 31, 2019)

Below is the latest interest rates for small saving schemes Jan-Mar 2019.

Scheme Name	The rate of Interest from 01/01/2019 to 31/03/2019	The rate of Interest from 01/10/2018 to 31/12/2018
Post Office Savings Account	4%	4%
1 Year Time Deposit	7.00%	6.90%
2 Year Time Deposit	7.00%	7.00%
3 Year Time Deposit	7.00%	7.20%
5 Year Time Deposit	7.80%	7.80%
5 Years RD (Recurring Deposit)	7.30%	7.30%
5 Years Monthly Income Account	7.70%	7.70%
KVP (Kisan Vikas Patra)	7.70%	7.70%
5 Years National Savings Certificate (NSC)	8.00%	8.00%
Public Provident Fund (PPF)	8.00%	8.00%
Sukanya Samriddhi Account	8.50%	8.50%
Senior Citizens Savings Scheme (SCSS)	8.70%	8.70%

Final Thoughts

There are nine post office small savings schemes. The government has decided to leave the interest rates for small saving schemes unchanged except for 1-year & 3-year time deposit schemes. You can earn the interest rate of 4-8.7% on these small savings schemes. Some of the post office small saving schemes will remain a good investment option for low-risk taker investors.