As you would be aware, the Govt. had announced a massive cut in the interest rates on the various Post Office Small Savings Schemes for the 1st Quarter of FY'20-21 i.e. Apr to Jun'20 [Massive Rate Cut On Post Office Small Savings Schemes].
Thereafter, as expected, it decided to continue with the status quo for the 2nd Quarter i.e. Jul-Sept'20 [Small Savings Interest Rates: Pause After A Massive Cut].
No change in the interest was announced for the 3rd Quarter [Small Savings Interest Rates: No Change For Oct-Dec'20].
And now the Govt. has — vide its Office Memorandum F.No.1/4/2019-NS dated 30.12.2020 — declared that the same interest rates will continue for the 4th Quarter too. In other words, there is no revision in the small savings schemes interest rates for the period Jan-Mar'21.
(By now you would surely be aware that since the last few years the interest rates on Small Savings Schemes are reset periodically on a quarterly basis.)
Accordingly, the interest rates on various Post Office Small Savings Schemes for the fourth quarter of the Financial Year 2020-21 — i.e. Jan 1 to Mar 31'21 — are detailed below:
Public Provident Fund (PPF) : 7.1% p.a. [compounded annually]
5-year National Saving Certificate (NSC) : 6.8% p.a. [compounded annually]
Monthly Income Scheme (MIS) : 6.6% p.a. [monthly compounding and paid out]
Senior Citizens Savings Scheme (SCSS) : 7.4% p.a. [quarterly compounding and paid out]
Time Deposits
1-year Deposit : 5.5% p.a.
2-year Deposit : 5.5% p.a.
3-year Deposit : 5.5% p.a.
5-year Deposit : 6.7% p.a.
(All on a quarterly compounding basis)
5-year Recurring Deposit : 5.8% p.a. [compounded quarterly]
Kisan Vikas Patra : 6.9% p.a. [compounded annually]
(The scheme will double your money in 10 years 4 months)
Sukanya Samriddhi Scheme : 7.6% p.a. [compounded annually]
Savings Deposit : 4% p.a. [compounded annually]
Note:
1. 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).
2. For the existing accounts under all other schemes, the contracted interest rate remains unchanged until maturity.
