Post Office Small Savings Schemes Investors Happy

The Department of Economic Affairs, Ministry of Finance has announced the latest interest rates on the Post Office Small Savings Schemes for the period Oct to Dec 2019.

Contrary to some rate reduction that many were expecting, the Govt. had decided that such interest rates shall remain unchanged.

This has naturally made the investors in Small Savings Schemes very happy. They have already been suffering as the interest rates on Bank FDs have come down in recent months.

The decision to maintain the same interest rates as the previous quarter was notified vide Office Memorandum F.No.1/4/2019-NS dated Sept 30, 2019 on the subject 'Revision of interest rates for Small Savings Schemes'.

Accordingly, the interest rates on various Post Office Small Savings Schemes for Quarter-3 2019-20 — i.e. Oct 1st to Dec 31st, 2019 — are detailed below:

Public Provident Fund (PPF) : 7.9% p.a. [compounded annually]

5-year National Saving Certificate (NSC) : 7.9% p.a. [compounded annually]

Monthly Income Scheme : 7.6% p.a. [monthly compounding and paid out]

Senior Citizens Savings Scheme : 8.6% p.a. [quarterly compounding and paid out]


small-savings-schemes-rate-unchanged

Time Deposits
1-year Deposit : 6.9% p.a.
2-year Deposit : 6.9% p.a.
3-year Deposit : 6.9% p.a.
5-year Deposit : 7.7% p.a.
(All on quarterly compounding basis)

5-year Recurring Deposit : 7.2% p.a. [compounded quarterly]

Kisan Vikas Patra : 7.6% p.a. [compounded annually] 
(The scheme will double your money in 9 years and 5 months)

Sukanya Samriddhi Scheme : 8.4% p.a. [compounded annually]

Savings Deposit : 4% p.a. [compounded annually]


Note:
1. As per the present policy, interest rates on Post Office Small Savings Schemes are reset periodically on a quarterly basis.
2. 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.
3. For the existing accounts under all other schemes, the contracted interest rate remains unchanged until maturity.

Meanwhile, the interest rates for the first two quarters of the current financial year can be accessed as under:
- Tiny Cut In Post Office Small Savings Schemes Interest
- Latest Post Office Small Savings Schemes Interest Rates