Revised Interest Rates for Small Saving Schemes FY 2019-20/ 2020-21 (NSC, PPF, KVP, SSAS, SCSS)

Govt. has notified the revised/ reduced interest rates for Small Saving Schemes (NSC, PPF, KVP, SSAS, SCSS, etc.) in respect of Q1 of FY 2020-21 (1 April to 30 June 2020), as compared to Q3/ Q4 of FY 2019-20, as under:

GoI Notification dt. 31 March 2020: Reduced Interest Rates for Small Savings Schemes for Q1 of FY 2020-21 (1 April ~ 30 June 2020)

It may be noted that interest rates for small savings schemes are being notified by the Government before beginning of the each Quarter from FY 2016-17, to bring them somewhat closer to the prevailing market rates. These interest rates continue to be attractive, as some of them enjoy income tax benefits and additional interest rate spreads.

Summary Table of Interest Rates Applicable for Small Savings Schemes during Q1 of FY 2020-21 (i.e. 1 April 2020 to 30 June 2020):

InstrumentsInterest Rates
(Q1 of 2020-21)
Compounding
Savings Deposit (SD)4.0Annual
1 Year Time Deposit (TD)5.5Quarterly
2 Year Time Deposit (TD)5.5Quarterly
3 Year Time Deposit (TD)5.5Quarterly
5 Year Time Deposit (TD)6.7Quarterly
5 Year Recurring Deposit (RD)5.8Quarterly
5 Year Senior Citizens Savings Scheme (SCSS)7.4Paid Quarterly
5 year Monthly Income Scheme (MIS)6.6Paid Monthly
5 Year National Savings Certificate (NSC)6.8Annual
Public Provident Fund (PPF) Scheme7.1Annual
Kisan Vikas Patra (KVP)6.9*Annual
Sukanya Samriddhi Account Scheme (SSAS)7.6Annual

* will mature in 124 months

Latest Interest Rates for Small Savings Schemes (Applicable during Q1 of 2020-21)

Revised interest rates of Small Savings Schemes (NSC, PPF, KVP, SSAS, SCSS, etc.) in respect of Q1 of FY 2020-21 (i.e. 1 April 2020 to 30 June 2020), are as under:

i) Sukanya Samriddhi Account Scheme (SSAS) – 7.6%

ii) Public Provident Fund (PPF) – 7.1%,

iii) Senior Citizen Savings Scheme (SCSS) – 7.4%,

iv) Kisan Vikas Patra (KVP) – 7.6%

v) National Savings Certificate (NSC) – 6.8%,

vi) Post office MIS (Monthly Income Scheme) is 6.6%,

vii) Post Office Recurring Deposit (RD) – 7.2%

viii) Savings Deposit – 4% (No Change), and

ix) Post Office Time Deposit – 5.5% to 6.7% based on tenure of 1 to 5 years.

Interest Rates on Small Saving Schemes for Q1 to Q4 of FY 2019-20 (i.e. 1 April 2019 to 31 March 2020)

Govt. has notified the revised interest rates for Small Saving Schemes (NSC, PPF, KVP, SSAS, SCSS, etc.) for Q2 of FY 2019-20 (1 July to 30 Sept. 2019) with reduction of 0.10% as compared to Q1 of FY 2019-20 (1 April to 30 June 2019). However, there was no change in the interest rates applicable for Q3 and Q4 of FY 2019-20.

GoI Notification dt. 31 Dec. 2019: Interest Rates for Small Savings Schemes for Q4 of FY 2019-20 (1 January ~ 31 March 2020)

GoI Notification dt. 30 Sept. 2019: Interest Rates for Small Savings Schemes for Q3 of FY 2019-20 (1 October ~ 31 December 2019)

GoI Notification dt. 28 June 2019: 0.10% Reduction Interest Rates for Small Savings Interest for Q2 of FY 2019-20 (1 July ~ 30 Sept. 2019)

GoI Notification dt. 29 March 2019: No Change in Small Savings Interest Rates for Q1 of FY 2019-20 (1 April ~ 30 June 2019)

Summary Table of Interest Rates Applicable for Small Savings Schemes during Q1, Q2, Q3 and Q4 of FY 2019-20 (i.e. 1 April 2019 to 31 March 2020):

InstrumentsInterest Rates
(Q1 of 2019-20)
Interest Rates
(Q2/ Q3/ Q4
of 2019-20)
Compounding
Savings Deposit (SD)4.04.0Annual
1 Year Time Deposit (TD)7.06.9Quarterly
2 Year Time Deposit (TD)7.06.9Quarterly
3 Year Time Deposit (TD)7.06.9Quarterly
5 Year Time Deposit (TD)7.87.7Quarterly
5 Year Recurring Deposit (RD)7.37.2Quarterly
5 Year Senior Citizens Savings Scheme (SCSS)8.78.6Paid Quarterly
5 year Monthly Income Scheme (MIS)7.77.6Paid Monthly
5 Year National Savings Certificate (NSC)8.07.9Annual
Public Provident Fund (PPF) Scheme8.07.9Annual
Kisan Vikas Patra (KVP)7.7*7.6**Annual
Sukanya Samriddhi Account Scheme (SSAS)8.58.4Annual

* will mature in 112 months | ** will mature in 113 months

Interest Rates on Small Saving Schemes for Q1 to Q4 of FY 2018-19 (i.e. 1 April 2018 to 31 March 2019)

Govt. has notified interest rates for Small Savings Schemes in respect of Q4 of FY 2018-19 (1 Jan. ~ 31 March 2019) which are more or less the same like in Q3 (1 Oct. ~ 31 Dec. 2018). However, Govt. has notified increased interest rates in respect of Q3, by 0.3% to 0.4%, as compared to Q1/ Q2 of FY 2018-19.

There was no change in interest rates of various small savings schemes for the period 1 Apr. 2018 to 30 Jun. 2018 and 1 July 2018 to 30 Sept. 2018 (i.e. applicable during the Q1/ Q2 of FY 2018-19), as compared to Q4 of FY 2017-18.

It’s was for the first time that Govt. has announced upward change in the interest rates of small saving schemes in respect of Q3 of FY 2018-19, since the quarterly review system of interest rates has been implemented in Q1 of FY 2016-17. Hopefully, the increased interest rates will be beneficial for the retired pensioners, old age persons, etc. those who are mainly dependent on the interest income from investments in small saving schemes.

GoI Notification dt. 31 Dec. 2018: Small Savings Interest Rates for Q4 of FY 2018-19 (1 Jan. to 31 March 2019)

GoI Notification dt. 19 Sept. 2018: Small Savings Interest Rates Increased by 0.3% to 0.4% for Q3 (1 Oct. 2018 to 31 Dec. 2018)

GoI Notification: No Change in Interest Rates for Q2 (1 July 2018 to 30 Sept. 2018)

GoI Notification: No Change in Interest Rates for Q1 (1 Apr. 2018 to 30 June 2018)

Interest Rates on Small Saving Schemes for Q1 to Q4 of FY 2017-18 (i.e. 1 Apr. 2017 ~ 31 Mar. 2018)

Govt. has reduced/ cut Interest Rates for Q4 of 2017-18 by 0.2% as compared to Q2 and Q3 for most of the small savings schemes. In Q3 of FY 2017-18 there was no change in interest rates, whereas in Q1 and Q2 interest rates were mostly based on a cut of 0.1% for all small savings schemes, as compared to the corresponding previous quarters.

In general, the Govt. has pursued the policy of protecting the interest of small savers, especially savings for the benefit of girl child (SSAS), the senior citizens (SCSS), etc. However, it may be noted that a reduction of 0.2% in interest rates on small saving has been effected during Q4 (0.1% in Q1 and Q2) of FY 2017-18 across the schemes except the Post Office Savings Account, which has been left untouched since 2015-16. However there was no change in Q3 interest rates for small savings.

GoI Notification: 0.2% Cut in Interest Rates for Q4 (w.e.f. 1 Jan. 2018) for Small Savings

GoI Notification: No Change in Interest Rates for Q3 (w.e.f. 1 Oct. 2017) for Small Savings

GoI Notification: Revised Interest Rates for Q2 (w.e.f. 1 Jul. 2017) on Small Savings

GoI Notification: Revised Interest Rates for Q1 (w.e.f. 1 Apr. 2017) on Small Savings

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