Latest Interest Rates for Small Saving Schemes July to September 2019

The government has notified the interest rates for small saving schemes for the period July to September 2019 (2nd Quarter of Financial Year 2019-2020).

This time, the government has reduced the interest rates for small saving schemes by 0.1 percent except for savings account. The rate of interest on savings account has been retained at 4% per annum. Let us take a look at the interest rates applicable on post office saving schemes from April 1, 2019.

The interest rates for post office saving schemes was last revised in the January to March quarter of 2019. Interest rates were kept unchanged in the April to June 2019 quarter.

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Post Office Small Saving Schemes

The schemes like PPF, NSC, RD Account, Sukanya Samriddhi Account, SCSS, MIS, and POTD are very popular among the Indians. Once you invest in NSC, RD, SCSS, Time Deposits, KVP, MIS, the rates of interest remains the same till the date of maturity. However, the rate of interest for the PPF scheme will change each quarter.

Quarterly Schedule for change in Rates of Interest

The interest rates for post office small savings schemes are revised on a quarterly basis since April 1, 2016. Below is the quarterly schedule for change in interest rates for all post office saving schemes.

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

As per the above schedule, the interest rates for post office saving schemes are announced for the 2nd quarter of the financial year 2019-20 starting July 1, 2019, and ending on September 30, 2019. The government has reduced the interest rates for small savings schemes by 10 points basis across all the schemes except on the savings account for the July-September quarter.

Snapshot of Interest Rates for Small Saving Schemes

Here is a quick snapshot of the interest rates on post office saving schemes for the July to September quarter of the financial year 2019-20.

1. The rate of interest for the SCSS (Senior Citizens Savings Scheme) has been reduced from 8.7% to 8.6%. Quarterly compounding and paid.

2. The rate of interest on girl child savings scheme Sukanya Samriddhi Account Scheme has been reduced from 8.55 to 8.4%. Annually compounding.

3. Now, NSC (National Savings Certificate) will fetch an interest rate of 7.9%. Annually compounding.

4. PPF Scheme (Public Provident Fund) will also offer 7.9%. Compounded annually.

5. KVP (Kisan Vikas Patra) will offer 7.6%. Annually compounded and will mature in 113 months.

6. The rate of interest on Post Office Monthly Income Account has been reduced at 7.6% from 7.7%. Compounded monthly and paid.

7. Recurring Deposit Account (5 years) will fetch an interest rate of 7.2%. Compounded quarterly.

8. Time Deposits of 1 to 5 years period will offer 6.9% to 7.7%. Quarterly compounding. Interest rates for 1 to 3 year Time Daeposit is 6.9% per annum and 7.7% per annum for 5 year Time deposit.

9. The rate of interest on Post Office Savings Account has been retained at 4%. Compounded annually.

Click here to read the announcement by Government of India about “Revision of interest rates for small savings schemes“.

Latest Interest Rates for Small Saving Schemes

Here are the latest interest rates for post office saving schemes (July 1, 2019, to September 30, 2019)

Scheme Name	The rate of Interest from 01/07/2019 to 30/09/2019	The rate of Interest from 01/04/2019 to 30/06/2019
Post Office Savings Account	4%	4%
1 Year Time Deposit	6.90%	7.00%
2 Year Time Deposit	6.90%	7.00%
3 Year Time Deposit	6.90%	7.00%
5 Year Time Deposit	7.70%	7.80%
5 Year Recurring Deposit	7.20%	7.30%
5 Year Monthly Income Account	7.60%	7.70%
Kisan Vikas Patra	7.60%	7.70%
5 Year National Savings Certificate	7.90%	8.00%
Public Provident Fund Scheme	7.90%	8.00%
Sukanya Samriddhi Account Scheme	8.40%	8.50%
Senior Citizens Savings Scheme	8.60%	8.70%

Final Thoughts

There are nine post office small savings schemes. The government has reduced the interest rates for small saving schemes by 0.1% for the July to September quarter of the financial year 2019-20. However, the interest rate for savings deposit account remains unchanged at 4% per annum.

Despite the slight reduction in interest rate, some post office small saving schemes will still remain a good investment option for Indians. These schemes are low on risk and provide good returns. These schemes offer complete safety and security of your invested capital as they are backed with a government guarantee.