The government has declared the new interest rate of small saving schemes for the first three months of the 2019. You would know that small savings schemes comprise PPF, NSC, Senior citizen saving scheme, Monthly Income scheme, Sukanya Samriddhi Yojana, Term deposits and KVP. There is no change in the interest rate of all these schemes except the term deposits of one and three years.
The government revises the interest rates of small savings scheme after every 3 months. The revised rates are declared for the coming quarter. Thus, the government has revised the rates for the months of January, February and March of the 2019. There was a notification of this revision on 31st December 2018.
The government decides the interest rate of small savings scheme on the basis of the yield of the government bonds. That is why the rates are revised every three months. The rates are declared upfront for every quarter. While in case of EPF the interest rate are declared at the end of the financial year.
New Interest Rates for Jan – March 2019
Term Deposits of Post Office
Now the term deposits of the post office have new interest rates. From First Jan 2019 the interest rates for the 1-year, 2-year, and 3-year deposit is same. It is 7% per year. The interest is compounded annually. Earlier, the interest rate for 1-year term deposit was 6.9%. For 2-year deposit, it was same 7.0% and for 3-year deposit it was 7.2%.
The interest rates on 5-year post office deposits have been kept unchanged at 7.8%. Similarly, the interest rate on the popular 5-year post office recurring deposit remained at 7.3%.
In the post office ‘term deposit’ is used in place of ‘fixed deposit’.
Public Provident Fund, MIS, KVP and NSC Interest Rate
The government does not change the interest rate of PPF account and National Saving certificate for the fourth quarter of 2018-19. The rate is unchanged at 8.0% per annum. Monthly Income Account also earns the same 7.3% interest per year. The interest is given every month.
Kisan Vikas Patra doubles your money in a fixed interval
Senior Citizen Saving Scheme and Sukanya Scheme Interest Rate
Senior Citizen saving scheme (SCSS) is also giving the same interest rate. The rate is at 8.7% per year. However, this interest rate is quite high in comparison to other saving schemes. The interest is paid after every 3 months.
Sukanya Samriddhi Account is a scheme for the girl child. It gives slightly lower interest rate than the SCSS. The interest rate for this scheme remains fixed at 8.5%. In this scheme, the interest is given at the maturity.
( 01/10/2018 to 31/12/2018)
( 01/01/2019 to 31/03/2019)
|Post Office Savings Account||Post Office||4.0%||4.0%||Annually|
|1-Year Time Deposit||Post Office||6.9%||7.0%||Quarterly|
|2-Year Time Deposit||Post Office||7.0%||7.0%||Quarterly|
|3-Year Time Deposit||Post Office||7.2%||7.0%||Quarterly|
|5-Year Time Deposit||Post Office||7.8%||7.8%||Quarterly|
|5-Year Recurring Deposit||Post Office||7.3%||7.3%||Quarterly|
|5-Year Senior Citizen Savings Scheme||Post Office & Bank||8.7%||8.7%||Quarterly paid|
|5-Year Monthly Income Account||Post Office||7.7%||7.7%||Monthly paid|
|5-Year National Savings Certificate||Post Office & Bank||8.0%||8.0%||Annually|
|Public Provident Fund Scheme||Post Office & Bank||8.0%||8.0%||Annually|
|Kisan Vikas Patra||Post Office & Bank||7.7%
(maturity- 112 months)
(maturity- 112 months)
|Sukanya Samriddhi Account Scheme||Post Office & Bank||8.5%||8.5%||Annually|
|(Source: Ministry of Finance)|
The government has raised the interest rates of these schemes in September. It had increased the interest rate by 0.4% for the Oct-Dec 2018. The interest rate on PPF and NSC was mere 7.6% till September 2018. But, now post office small savings schemes are getting decent interest rate. Note, PPF, NSC and senior citizen saving schemes also gives tax benefit along with the good interest rate.