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Small Savings Schemes Still Attractive! Here Are Interest Rates For October To December 2019 Quarter

Team BankBazaar
Image by Alexas_Fotos from Pixabay

The government has announced that it will keep the interest rates unchanged for post office savings schemes or small saving schemes for the October to December quarter of the financial year 2019-20.

As per the finance ministry statement, “On the basis of the decision of the government, interest rates for small savings schemes are notified on quarterly basis since 1 April 2016. Accordingly, the rates of interest of various small savings schemes for the third quarter of the financial year 2019-20 starting from 1 October 2019 and ending on 31 December 2019 shall remain unchanged from those notified for the second quarter (1st July 2019 to 30 September 2019) of financial year 2019-20.”

In a falling interest rate era, small saving schemes are still attractive, offering marginally higher rates of interests and also doubling up as a tax-saving instrument. In case you are looking to invest in risk-free small saving schemes, here are the latest interest rates:

Small Saving Scheme Interest Rate
Public Provident Fund (PPF) 7.9​ % per annum (compounded yearly)
Sukanya Samriddhi Account Scheme 8.4​% Per Annum (compounded yearly)
Savings Account 4.0% Per Annum (compounded yearly)
Post Office Time Deposit 1-Year 6.9% (Quarterly)
Post Office Time Deposit 2-Year 6.9% (Quarterly)
Post Office Time Deposit 3-year 6.9% (Quarterly)
Post Office Time Deposit 5-Year 7.7% (Quarterly)
Kisan Vikas Patra (KVP ) 7.6 % (compounded yearly). Amount Invested doubles in 113 months (9 years & 5​​ months)

 

National Savings Recurring Deposit Account 7.2% (Compounded quarterly)
National Savings Certificate (NSC) 7.9% (Compounded yearly)
Senior Citizen Savings Scheme (SCSS) 8.6 ​% per annum, payable from the date of deposit of 31st March/30th Sept/31st December in the first instance & thereafter, interest shall be payable on 31st March, 30th June, 30th Sept and 31st December.
Post Office Monthly Income Scheme Account (MIS) 7.6​ % per annum payable monthly