The government of India has announced the interest rates for small saving schemes for the period July to September 2018 (2nd Quarter of FY 2018-2019). This time too, the government has not changed any interest rates for small saving schemes. The interest rates were also not changed in the 1st quarter (April to June 2018).
The small saving schemes like PPF, NSC, Sukanya Samriddhi Account, Post Office Time Deposit, KVP, RD Account and SCSS Account are very popular among the people. The interest rates on small saving schemes have a fixed locking period except for post office savings account.
Schedule for change in Interest Rates
The government announces rates of interest for small saving schemes on a quarter basis since April 1, 2016. The table below shows the quarterly schedule for change in rates of interest on small savings schemes.
| S. No. | Quarter for which interest rates would be effective | 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, the interest rates are notified for the 2nd quarter of the financial year 2018-19 starting July 1, 2018, and ending on September 30, 2018.
Latest Interest Rates for Small Saving Schemes (July 1, 2018, to September 30, 2018)
You can find the current post office interest rates table below.
| Scheme Name | The rate of Interest from 01/07/2018 to 30/9/2018 | The rate of Interest from 01/04/2018 to 30/06/2018 |
| Post Office Savings Account | 4% | 4% |
| 1 Year Time Deposit | 6.60% | 6.60% |
| 2 Years Time Deposit | 6.70% | 6.70% |
| 3 Years Time Deposit | 6.90% | 6.90% |
| 5 Years Time Deposit | 7.40% | 7.40% |
| Recurring Deposit (RD) – 5 Years | 6.90% | 6.90% |
| 5 Years Monthly Income Account | 7.30% | 7.30% |
| Kisan Vikas Patra (KVP) | 7.30% | 7.30% |
| 5 Years National Savings Certificate (NSC) | 7.60% | 7.60% |
| Public Provident Fund (PPF) | 7.60% | 7.60% |
| Sukanya Samriddhi Account | 8.10% | 8.10% |
| Senior Citizens Savings Scheme (SCSS) | 8.30% | 8.30% |
Small Saving Schemes
The interest rates on various small saving schemes for the 2nd quarter of the financial year 2018-19 are given below.
- Senior Citizens Saving Scheme (SCSS) – 8.3% per annum (Quarterly compounding and paid).
- Sukanya Samriddhi Account – 8.1% p.a. (Annually compounding).
- National Savings Certificate (NSC) – 7.6% p.a. (Annually compounding).
- Public Provident Fund (PPF) – 7.6% per annum (Compounding frequency is annual).
- Kisan Vikas Patra (KVP) – 7.3% per annum (Compounded annually and mature in 118 months).
- Post Office Monthly Income Scheme – 7.3% p.a. (Monthly compounding and paid).
- Five-year Recurring Deposit – 6.9% (Quarterly compounding).
- For Time Deposits of 1-5 years: (Compounding frequency is quarterly for all Time Deposits).
For Time Deposit of 5 Years – 7.4%
Time Deposit of 3 Years – 6.9%
For Time Deposit of 2 Years – 6.7%
Time Deposit of 1 Year – 6.6%
- Post Office Savings Account – 4% per annum (Compounding frequency is annual).
Applicability of Revised Interest Rates
The revised rates for small saving schemes would apply only to the new accounts opened except post office savings account, PPF, and Sukanya Samriddhi Account. The contracted rates for post office time deposit, KVP, NSC, RD account, post office MIS, and SCSS are locked-in so the interest offered on the date of investment will remain unchanged for the entire tenure of the investment.
The finance ministry has kept the interest rates for small saving schemes unchanged. These schemes still remain a good investment option for low-risk appetite investors.
Also read: Post Office Monthly Income Scheme (MIS) Account
Also read: NPS (National Pension Scheme) | NPS Scheme
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