Interest Rates of Small Savings Schemes

Even today, they are unique set of savers who wishes to save their hard earned money in Post Office Small Saving Schemes. Though these schemes are popular under “Postal Small Savings”, some of the schemes are offering by the Banks too.

The schemes offered by the Banks are-

  • Public Provident Fund
  • Senior Citizen Savings Schemes
  • Recurring Deposits(RD)
  • Fixed Deposits(In Post Offices, they are referred as “Term Deposits”)
  • Sukanya Samriddhi Yojana (Exclusive scheme for girl child below 10 Years of age)

Therefore, Small savings are not limited to Post Offices, they can also be availed at Banks too.

Previously, Indian Government sets interest rates for this schemes “Annually”, But from 2018, Government is modifying the interest rates “every Quarter”(Every 3 Months)

As per the last updated Quarter(July to September 2021)the interest rates decided by the government are as follows-

Scheme NameInterest Rate Applicable(For Current Quarter July-September,2021)Interest Rate Calculation mode
Savings a/c4%Annually
Sukanya Samriddhi Yojana7.6%(Highest Interest of all schemes)Annually
5 Years National Saving Certificate(NSC)6.8%Annually
Post Office Monthly Income Scheme(MIS)6.6%Paid Monthly as Installments up to 5 Years
Senior Citizen Saving Schemes7.4%Paid Quarterly
5 Year Recurring Deposits5.8%Calculated Quarterly
Post Office Time Deposit for 1-3 Years5.5%Calculated Quarterly
Time Deposit for 5 Years6.7%Calculated Quarterly
Kisan Vikas Patra(Doubles in 10 Years, 4 Months)6.9%Calculated Annually

Government didn’t altered the interest rates since April 2020. The same interest rates are applying since then. But it may subject to change from the next Quarter(May or May not change on Government’s Discretion.

So do check interest rates every Quarter and avail the schemes at any Post Offices/Banks(Some Schemes aare offered by the Banks too)

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