The Department of Economic Affairs, Ministry of Finance has announced the interest rates for small savings schemes for the period January to March 2020 (4th Quarter of Financial Year 2019-2020).
The Government of India has kept the interest rates for small savings schemes unchanged for the third consecutive quarter of the current financial year. This means the investments in these schemes from 1st January to 31st March 2020 will carry the same rates of interest as they were from 1st October to 31st December 2019.
The decision of keeping the interest rates unchanged has made the investors very happy in the new year 2020. Let us take a look at the interest rates applicable on post office savings schemes from January 1, 2020.
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Post Office Small Savings Schemes
Public Provident Fund (PPF), NSC, MIS, RD Account, Senior Citizen Saving Scheme, Sukanya Samriddhi Account, and POTD are very popular schemes among the Indians. These schemes are used for tax savings and the returns are much higher than bank fixed deposits.
Note that the rates of interest remain the same till the date of maturity when you invest in these instruments like NSC, RD, SCSS, Time Deposits, KVP, and MIS. However, the rate of interest for the Public Provident Fund (PPF) will change every quarter.
Quarterly Schedule for change in Rates of Interest
The interest rates for post office small savings schemes are notified on a quarterly basis since April 1, 2016. In the following table, you will find the quarterly schedule for change in interest rates for all post office savings schemes.
| S. No. | Quarter for which interest rates would be effective | The 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-mentioned schedule, the interest rates for post office saving schemes are announced for the 4th quarter of the financial year 2019-20 starting January 1, 2020, and ending on March 31, 2020. The government has decided to keep the interest rates for these schemes unchanged for the third consecutive quarter.
Click here to read the office memorandum issued by the Department of Economic Affairs, Ministry of Finance about the revision of interest rates for Small Savings Schemes.
Latest Interest Rates for Small Savings Schemes
Below is a quick snapshot of the interest rates on post office savings schemes for the January to March quarter of the financial year 2019-20.
- The Senior Citizens Savings Scheme (SCSS) will remain unchanged at 8.6%. Quarterly compounding and paid.
- The rate of interest on girl child savings scheme Sukanya Samriddhi Account Scheme will continue to fetch an interest rate of 8.4%. Annually compounding.
- NSC (National Savings Certificate) will remain constant at 7.9%. Annually compounding.
- The Public Provident Fund (PPF) scheme will also remain constant at 7.9%. Compounded annually.
- KVP (Kisan Vikas Patra) will remain unchanged at 7.6%. Annually compounded and will mature (Double your money) in 113 months.
- The Post Office Monthly Income Account will remain unchanged at 7.6%. Compounded monthly and paid.
- Five years of Recurring Deposit (RD) Account will remain constant at 7.2%. Compounded quarterly.
- Time Deposits of 1 to 5 years period will also offer the same interest rate of 6.9% to 7.7% p.a. Quarterly compounding. Interest rates for 1 to 3 year Time Deposit are 6.9% p.a. and 7.7% p.a. for 5 year Time deposit.
- The rate of interest on Post Office Savings Account will remain constant at 4%. Compounded annually.
Latest Interest Rates for Small Savings Schemes
In the following table, you will find the latest interest rates for post office savings schemes (January 1, 2020, to March 31, 2020)
| Scheme Name | Rate of Interest from 01/01/2020 to 31/03/2020 | Rate of Interest from 01/10/2019 to 31/12/2019 |
| Post Office Savings Account | 4% | 4% |
| 1 Year Time Deposit | 6.90% | 6.90% |
| 2 Years Time Deposit | 6.90% | 6.90% |
| 3 Years Time Deposit | 6.90% | 6.90% |
| 5 Years Time Deposit | 7.70% | 7.00% |
| 5 Years Recurring Deposit (RD) | 7.20% | 7.20% |
| 5 Years Monthly Income Account | 7.60% | 7.60% |
| Kisan Vikas Patra (KVP) | 7.60% | 7.60% |
| 5 Years National Savings Certificate (NSC) | 7.90% | 7.90% |
| Public Provident Fund (PPF) | 7.90% | 7.90% |
| Sukanya Samriddhi Account | 8.40% | 8.40% |
| Senior Citizens Savings Scheme (SCSS) | 8.60% | 8.60% |
You can also view the earlier quarter’s interest rate in my earlier posts:
- Latest Interest Rates for Small Saving Schemes October to December 2019
- Latest Interest Rates for Small Saving Schemes July to September 2019
- Interest Rates for Small Saving Schemes April to June 2019
- Latest Interest Rates for Small Saving Schemes January to March 2019
- Interest Rates for Small Saving Schemes October to December 2018
- Latest Interest Rates for Small Saving Schemes July to September 2018
Final Thoughts
There are nine post office small savings schemes. The Government of India has kept the interest rates for small savings schemes unchanged for the fourth quarter (January to March) of the financial year 2019-20.
As there is no change in interest rates for small savings schemes, some schemes will still remain a good investment option for conservative investors. These schemes are low on risk and provide good returns which are much higher than bank fixed deposits. These are government-backed schemes and offer complete safety and security of your invested capital.
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