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Wow! Just A Tiny Cut In Small Savings Schemes Q3 Interest Rates


By now you are well aware that, from the current financial year, the interest rates on Post Office Small Savings Schemes are revised every quarter (as against annual resetting till last year).

For more information on this, read Small Saving Schemes Interest Rates To Turn Volatile.

Consequently, I had shared with you, the interest rates applicable for the Quarters 1 and 2, vide my blog posts 
- Small Savings Schemes Rate Cut is Fantastic News, and
- Unchanged PO Savings Schemes Interest Rates for Q2 2016-17

You can check the interest rates for the periods 'Apr 1 to Jun 30, 2016' and 'Jul 1 to Sept 30, 2016' from the above posts.

And now, as we begin the third quarter of the Financial Year 2016-17 from tomorrow, the Ministry of Finance has declared the interest rates that will apply on various Small Savings Schemes, for the period 1st October to 31st December 2016.

Details of the same are provided below:

As you will note therefrom, there is a SMALL drop of 0.1% across various schemes.

Public Provident Fund : From 8.1% to 8.0% [compounded annually]

5-year NSC : From 8.1% to 8.0% [compounded annually]
10-year NSC : This was discontinued w.e.f. Dec 2015

Monthly Income Scheme : From 7.8% to 7.7% [monthly compounding and paid out]

Senior Citizens Savings Scheme : From 8.6% to 8.5% [quarterly compounding and paid out]

Time Deposits
1-year Deposit : From 7.1% to 7.0%
2-year Deposit : From 7.2% to 7.1%
3-year Deposit : From 7.4% to 7.3%
5-year Deposit : From 7.9% to 7.8%
(All on quarterly compounding basis)

5-year Recurring Deposit : From 7.4% to 7.3% [compounded quarterly]

Kisan Vikas Patra : From 7.8% to 7.7% [compounded annually] 
(The scheme will now double your money in 112 months as against 110 months earlier)

Sukanya Samriddhi Scheme : From 8.6% to 8.5% [compounded annually]

Savings Deposit : No Change. 4% p.a. [compounded annually]


IMPORTANT FOOTNOTE
The revised interest rates apply only to the "new accounts" opened during the respective period (except PPF and Sukanya Samriddhi Scheme, where the new rate is applied on the outstanding account balance). For the existing accounts under all other schemes, the contracted interest rate remains unchanged until maturity.

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