The Ministry of Finance has notified the interest rates for Post Office Saving Scheme for the period October to December 2020 (3rd Quarter of Financial Year 2020-2021) on September 30, 2020.
The Government of India has kept the post office savings interest rates unchanged for the third quarter of the current financial year. This means there is no change in the small saving interest rates from 1st October to 31st December 2020.
The Government had announced a massive cut in the interest rates on small savings scheme by anywhere between 70-140 basis points in the first quarter of FY20-21. Therefore, the decision of keeping the interest rates unchanged will bring some relief to the fixed income investors.
Let us take a look at the Post Office Saving Scheme Interest Rates from October 1, 2020.
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Indian Post Office Saving Schemes
Public Provident Fund, NSC, RD Account, MIS, Senior Citizen Saving Scheme, Sukanya Samriddhi Account, and POTD account are best post office saving scheme. Millions of Indians used to invest their money in these popular saving instruments.
Note that the rates of interest for NSC, RD account, SCSS, Term Deposits, KVP, and MIS remain the same till the date of maturity when you invest in these post office small savings. However, the rate of interest for the Public Provident Fund scheme will change every quarter.
Also read: PPF (Public Provident Fund) | PPF Account
Also read: PO Monthly Income Scheme (MIS) Account
Timetable for change in Interest Rates
The post office savings interest rates are reviewed every quarter since April 1, 2016. In the below table, you will find the quarterly timetable for change in interest rates for all post office small saving scheme.
| 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 schedule, the small saving schemes interest rates are announced for the 3rd quarter of the financial year 2020-21 starting October 1, 2020, and ending on December 30, 2020. The government kept the small saving rates unchanged for the October-December quarter of FY 2020-21.
Click here to read the office memorandum dated 30.09.2020 issued by the Department of Economic Affairs, Ministry of Finance.
Latest Post Office Saving Schemes Interest Rates
Here is a quick snapshot of the small saving interest rates for the October to December quarter of the financial year 2020-21.
1. The Senior Citizens Savings Scheme (SCSS) will continue to carry an interest rate of 7.4%. Quarterly compounding and paid.
2. The rate of interest on Sukanya Samriddhi Account (SSA) Scheme will remain unchanged at 7.6%. Annually compounding.
3. The interest rate on NSC (National Savings Certificate) is maintained at 6.8%. Annually compounding.
4. The PPF (Public Provident Fund) scheme will continue to fetch an interest rate of 7.1%. Compounded annually.
5. The interest of Kisan Vikas Patra (KVP) is retained at 6.9%. Annually compounded. The Kisan Vikas Patra Post Office scheme will now mature (Double your money) in 124 months.
6. The five-year Post Office Monthly Income Scheme interest will remain unchanged at 6.6%. Compounded monthly and paid.
7. Five years of Recurring Deposit Account will remain constant at 5.8%. Compounded quarterly.
8. Time Deposit Scheme in Post Office of 1 to 5 years period will also fetch interest rate of 5.5% to 6.7% p.a. Quarterly compounding. Interest rates for 1 to 3 year Time Deposit are 5.5% p.a. and 6.7% p.a. for 5 year Time deposit.
9. The rate of interest on Post Office Savings Account is maintained at 4%. Compounded annually.
Latest Post Office Savings Interest Rates
In the following table, you will find the latest post office saving schemes interest rates (October 1, 2020, to December 30, 2020).
| Scheme Name | Rate of Interest from 01/10/2020 to 31/12/2020 | Rate of Interest from 01/07/2020 to 30/09/2020 |
| PO Savings Account | 4% | 4% |
| 1 Year Time Deposit | 5.50% | 5.50% |
| 2 Years Time Deposit | 5.50% | 5.50% |
| 3 Years Time Deposit | 5.50% | 5.50% |
| 5 Years Time Deposit | 6.70% | 6.70% |
| 5 Years Recurring Deposit | 5.80% | 5.80% |
| 5 Years Monthly Income Account | 6.60% | 6.60% |
| Kisan Vikas Patra Interest | 6.90% | 6.90% |
| 5 Years National Savings Certificate | 6.80% | 6.80% |
| Public Provident Fund | 7.10% | 7.10% |
| Sukanya Samriddhi Account | 7.60% | 7.60% |
| Senior Citizens Savings Scheme | 7.40% | 7.40% |
You can also view the earlier quarter’s interest rate in my earlier posts:
- Interest Rates for Small Savings Scheme July-September 2020
- Latest Small Saving Interest Rates April to June 2020
- Latest Small Saving Schemes Interest Rates January to March 2020
- Interest Rates for Indian Post Office Saving Schemes October to December 2019
Final Thoughts
There are nine small savings scheme like PPF, NSC, RD account, SCSS, SSA, KVP, POOTD, Term Deposits, etc. The Government of India kept the post office saving scheme interest rates unchanged for the third quarter (October to December) of the financial year 2020-21. This will bring some relief to the millions of investors who invest in these schemes.
As there is no change in small saving interest rates, some schemes will remain a good investment option for fixed income investors. These small savings are government-backed schemes and offer the safety and security of your invested capital.
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Also Read: Top 6 Best Safe Investment Options in India