Ministry of Finance, Govt. of India (GOI) notifies the interest rates for Small Saving Schemes (KVP, MIS, NSC, PPF, RD, SB, SCSS, SSAS and Term Deposits) on quarterly basis, i.e. small savings interest rates are revised for Q1, Q2, Q3 and Q4 of each Financial Year, after necessary review of the prevailing economic scenario.
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. Year-wise/ Quarter-wise details of such revisions are as under:
Q1 of FY 2023-24 (01/04/2023 to 30/06/2023): Revised Interest Rates on Small Savings Schemes
Govt. notifies increased interesst rates for certain Small Saving Schemes (KVP, MIS, NSC, RD, SCSS, SSAS and Term Deposits, i.e. except SB and PPF) in respect of Q1 of FY 2023-24 (01/04/2023 to 30/06/2023), as compared to the interest rates applicable in respect of Q4 of FY 2022-23 (01/01/2023 to 31/03/2023).
GoI Notification dated 31/03/2023: Interest Rates increased for Small Savings Schemes (KVP, MIS, NSC, RD, SCSS, SSAS and Term Deposits, i.e. except SB and PPF) for Q1 of FY 2023-24 (01/04/2023 to 30/06/2023)
Interest Rates on Small Savings Schemes Increased: Q1 of FY 2023-24
FY 2022-23 (Q1 to Q4): Interest Rates on Small Savings Schemes
Govt. notifies that there is no change in interest rates for Small Saving Schemes (NSC, PPF, KVP, SSAS, SCSS, etc.) in respect of Q1 & Q2 of FY 2022-23 (01/04/2022 to 30/09/2022), as compared to the interest rates applicable in respect of Q4 of FY 2021-22 (01/01/2022 to 31/03/2022). However, the interest rates were increased for Q3 and Q4 as compared to Q2 of FY 2022-23 for certain Small Saving Schemes.
Summary Table of Interest Rates Applicable for Small Savings Schemes during FY 2022-23 (Q1 to Q4):
| Instruments | Interest Rates (Q1/ Q2 of FY 2022-23) | Interest Rates (Q3 of FY 2022-23) | Interest Rates (Q4 of FY 2022-23) | Compo-unding |
| Savings Bank Deposit (SB) | 4.0 | 4.0 | 4.0 | Annual |
| 1 Year Time Deposit (TD) | 5.5 | 5.5 | 6.6 | Quarterly |
| 2 Year Time Deposit (TD) | 5.5 | 5.7 | 6.8 | Quarterly |
| 3 Year Time Deposit (TD) | 5.5 | 5.8 | 6.9 | Quarterly |
| 5 Year Time Deposit (TD) | 6.7 | 6.7 | 7.0 | Quarterly |
| 5 Year Recurring Deposit (RD) | 5.8 | 5.8 | 5.8 | Quarterly |
| 5 Year Senior Citizens Savings Scheme (SCSS) | 7.4 | 7.6 | 8.0 | Paid Quarterly |
| 5 year Monthly Income Scheme (MIS) | 6.6 | 6.7 | 7.1 | Paid Monthly |
| 5 Year National Savings Certificate (NSC) | 6.8 | 6.8 | 7.0 | Annual |
| Public Provident Fund (PPF) Scheme | 7.1 | 7.1 | 7.1 | Annual |
| Kisan Vikas Patra (KVP) | 6.9* | 7.0* | 7.2* | Annual |
| Sukanya Samriddhi Account Scheme (SSAS) | 7.6 | 7.6 | 7.6 | Annual |
* will mature in 124 months (Q1/Q2), 123 months (Q3), 120 months (Q4).
GoI Notification dt. 30/12/2022: Interest Rates increased for Small Savings Schemes (Term Deposits, SCSS, PPF, MIS, and KVP) for Q4 of FY 2022-23 (01/01/2023 to 31/03/2023)
Savings Booster Q4 2022-23: Interest Rates Increased for Small Saving Schemes
GoI Notification dt. 29/09/2022: Interest Rates increased for Small Savings Schemes (2 & 3 year Term Deposits, SCSS, MIS, and KVP) for Q3 of FY 2022-23 (01/10/2022 to 31/12/2022)
Govt. Clarification on Premature Closure due to death of SCSS Account holder
GoI Notification dt. 30/06/2022: No change in Interest Rates for Small Savings Schemes for Q2 of FY 2022-23 (01/07/2022 to 30/09/2022)
GoI Notification dt. 31/03/2022: No change in Interest Rates for Small Savings Schemes for Q1 of FY 2022-23 (01/04/2022 to 30/06/2022)
FY 2021-22 (Q1 to Q4): Interest Rates on Small Savings Schemes
Govt. notifies that there is no change in interest rates for Small Saving Schemes (NSC, PPF, KVP, SSAS, SCSS, etc.) in respect of Q1, Q2, Q3 and Q4 of FY 2021-22 (01/04/2021 to 31/03/2022), as compared to the interest rates applicable in respect of Q4 of FY 2020-21 (01/01/2021 to 31/03/2021).
GoI Notification dt. 31/12/2021: No change in Interest Rates for Small Savings Schemes for Q4 of FY 2021-22 (01/01/2022 to 31/03/2022)
GoI Notification dt. 30/09/2021: No change in Interest Rates for Small Savings Schemes for Q3 of FY 2021-22 (01/10/2021 to 31/12/2021)
GoI Notification dt. 30/06/2021: No change in Interest Rates for Small Savings Schemes for Q2 of FY 2021-22 (01/07/2021 to 30/09/2021)
GoI Notification dt. 01/04/2021: No change in Interest Rates for Small Savings Schemes for Q1 of FY 2021-22 (01/04/2021 to 30/06/2021)
GoI Notification dt. 31/03/2021: Revised/ Reduced Interest Rates for Small Savings Schemes for Q1 of FY 2021-22 (01/04/2021 to 30/06/2021) (SUPERSEDED VIDE NOTIFICATION/ OM DT. 01/04/2021)
Summary Table of Interest Rates Applicable for Small Savings Schemes during FY 2021-22 (Q1 to Q4):
| Instruments | Interest Rates (Q4 of FY 2020-21) | Interest Rates (Q1, Q2, Q3 & Q4 of FY 2021-22) | Compounding |
| Savings Deposit (SD) | 4.0 | 4.0 | Annual |
| 1 Year Time Deposit (TD) | 5.5 | 5.5 | Quarterly |
| 2 Year Time Deposit (TD) | 5.5 | 5.5 | Quarterly |
| 3 Year Time Deposit (TD) | 5.5 | 5.5 | Quarterly |
| 5 Year Time Deposit (TD) | 6.7 | 6.7 | Quarterly |
| 5 Year Recurring Deposit (RD) | 5.8 | 5.8 | Quarterly |
| 5 Year Senior Citizens Savings Scheme (SCSS) | 7.4 | 7.4 | Paid Quarterly |
| 5 year Monthly Income Scheme (MIS) | 6.6 | 6.6 | Paid Monthly |
| 5 Year National Savings Certificate (NSC) | 6.8 | 6.8 | Annual |
| Public Provident Fund (PPF) Scheme | 7.1 | 7.1 | Annual |
| Kisan Vikas Patra (KVP) | 6.9 | 6.9* | Annual |
| Sukanya Samriddhi Account Scheme (SSAS) | 7.6 | 7.6 | Annual |
* will mature in 124 months
FY 2020-21 (Q1 to Q4): Interest Rates on Small Savings Schemes
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 (01/04/2020 to 30/06/2020), as compared to the interest rates applicable in respect of Q4 of FY 2019-20 (01/01/2020 to 31/03/2020), however, there was no change in the interest rates for Small Saving Schemes in respect of Q2, Q3 and Q4 of FY 2020-21 (01/07/2020 to 31/03/2021). The details are as under:
GoI Notification dt. 30/12/2020: Interest Rates for Small Savings Schemes for Q4 of FY 2020-21 (01/01/2021 to 31/03/2021)
GoI Notification dt. 30/09/2020: Interest Rates for Small Savings Schemes for Q3 of FY 2020-21 (01/10/2020 to 31/12/2020)
GoI Notification dt. 30/06/2020: Interest Rates for Small Savings Schemes for Q2 of FY 2020-21 (01/07/2020 to 30/09/2020)
GoI Notification dt. 31/03/2020: Reduced Interest Rates for Small Savings Schemes for Q1 of FY 2020-21 (01/04/2020 to 30/06/2020)
Summary Table of Interest Rates Applicable for Small Savings Schemes during FY 2020-21 (Q1 to Q4):
| Instruments | Interest Rates (Q4 of FY 2019-20) | Interest Rates (Q1, Q2, Q3 & Q4 of FY 2020-21) | Compounding |
| Savings Deposit (SD) | 4.0 | 4.0 | Annual |
| 1 Year Time Deposit (TD) | 6.9 | 5.5 | Quarterly |
| 2 Year Time Deposit (TD) | 6.9 | 5.5 | Quarterly |
| 3 Year Time Deposit (TD) | 6.9 | 5.5 | Quarterly |
| 5 Year Time Deposit (TD) | 7.7 | 6.7 | Quarterly |
| 5 Year Recurring Deposit (RD) | 7.2 | 5.8 | Quarterly |
| 5 Year Senior Citizens Savings Scheme (SCSS) | 8.6 | 7.4 | Paid Quarterly |
| 5 year Monthly Income Scheme (MIS) | 7.6 | 6.6 | Paid Monthly |
| 5 Year National Savings Certificate (NSC) | 7.9 | 6.8 | Annual |
| Public Provident Fund (PPF) Scheme | 7.9 | 7.1 | Annual |
| Kisan Vikas Patra (KVP) | 7.6 | 6.9* | Annual |
| Sukanya Samriddhi Account Scheme (SSAS) | 8.4 | 7.6 | Annual |
* will mature in 124 months
FY 2019-20 (Q1 to Q4): Interest Rates on Small Savings Schemes
Govt. has notified the revised interest rates for Small Saving Schemes (NSC, PPF, KVP, SSAS, SCSS, etc.) for Q2 of FY 2019-20 (01/07/2019 to 30/09/2019) with reduction of 0.10% as compared to Q1 of FY 2019-20 (01/04/2019 to 30/06/2019). However, there was no change in the interest rates applicable for Q3 and Q4 of FY 2019-20.
GoI Notification dt. 31/12/2019: Interest Rates for Small Savings Schemes for Q4 of FY 2019-20 (01/01/2020 to 31/03/2020)
GoI Notification dt. 30/09/2019: Interest Rates for Small Savings Schemes for Q3 of FY 2019-20 (01/10/2019 to 31/12/2019)
GoI Notification dt. 28/06/2019: 0.10% Reduction Interest Rates for Small Savings Interest for Q2 of FY 2019-20 (01/07/2019 to 30/09/2019)
GoI Notification dt. 29/03/2019: No Change in Small Savings Interest Rates for Q1 of FY 2019-20 (01/04/2019 to 30/06/2019)
Summary Table of Interest Rates Applicable for Small Savings Schemes during Q1, Q2, Q3 and Q4 of FY 2019-20 (01/04/2019 to 31/03/2020):
| Instruments | Interest Rates (Q1 of FY 2019-20) | Interest Rates (Q2/ Q3/ Q4 of FY 2019-20) | Compounding |
| Savings Deposit (SD) | 4.0 | 4.0 | Annual |
| 1 Year Time Deposit (TD) | 7.0 | 6.9 | Quarterly |
| 2 Year Time Deposit (TD) | 7.0 | 6.9 | Quarterly |
| 3 Year Time Deposit (TD) | 7.0 | 6.9 | Quarterly |
| 5 Year Time Deposit (TD) | 7.8 | 7.7 | Quarterly |
| 5 Year Recurring Deposit (RD) | 7.3 | 7.2 | Quarterly |
| 5 Year Senior Citizens Savings Scheme (SCSS) | 8.7 | 8.6 | Paid Quarterly |
| 5 year Monthly Income Scheme (MIS) | 7.7 | 7.6 | Paid Monthly |
| 5 Year National Savings Certificate (NSC) | 8.0 | 7.9 | Annual |
| Public Provident Fund (PPF) Scheme | 8.0 | 7.9 | Annual |
| Kisan Vikas Patra (KVP) | 7.7* | 7.6* | Annual |
| Sukanya Samriddhi Account Scheme (SSAS) | 8.5 | 8.4 | Annual |
* will mature in 112 months (Q1), 113 months (Q2, Q3, Q4)
FY 2018-19 (Q1 to Q4): Interest Rates on Small Savings Schemes
Govt. has notified interest rates for Small Savings Schemes in respect of Q4 of FY 2018-19 (01/01/2019 to 31/03/2019) which are more or less the same like in Q3 (01/10/2018 to 31/12/2018). 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 01/04/2018 to 30/06/2018 and 01/07/2018 to 30/09/2018 (i.e. applicable during the Q1/ Q2 of FY 2018-19), as compared to Q4 of FY 2017-18.
It 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. 31/12/2018: Small Savings Interest Rates for Q4 of FY 2018-19 (01/01/2019 to 31/03/2019)
GoI Notification dt. 19/09/2018: Small Savings Interest Rates Increased by 0.3% to 0.4% for Q3 of FY 2018-19 (01/10/2018 to 31/12/2018)
GoI Notification dt. 02/07/2018: No Change in Interest Rates for Q2 of FY 208-19 (01/07/2018 to 30/09/2018)
GoI Notification dt. 28/03/2018: No Change in Interest Rates for Q1 of FY 2018-19 (01/04/2018 to 30/06/2018)
FY 2017-18 (Q1 to Q4): Interest Rates on Small Savings Schemes
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 dt. 27/12/2017: 0.2% Cut in Interest Rates for Q4 of FY 2017-18 (01/01/2018 to 31/03/2018)
GoI Notification dt. 29/09/2017: No Change in Interest Rates for Q3 of FY 2017-18 (01/10/2017 to 31/12/2017)
GoI Notification dt. 30/06/2017: Revised Interest Rates for Q2 of FY 2017-18 (01/07/2017 to 30/09/2017)
GoI Notification dt. 31/03/2017: Revised Interest Rates for Q1 of FY 2017-18 (01/04/2017 to 30/06/2017)
FY 2016-17 (Q1 to Q4): Interest Rates on Small Savings Schemes
During 2016-17, the Govt. has twice revised interest rates on various small savings schemes, i.e. interest rates for Q3 and Q4 of FY 2016-17 were similar and were mostly based on a cut of 0.1% compared to the rates notified for Q1 and Q2 of FY 2016-17. However, interest rates announced for Q1 of FY 2016-17 were substantially reduced rates as compared to rates prevalent during the FY 2015-16. Relevant notifications, as issued by the Govt. from time to time are as under:
GoI Notification dt. 30/03/2016: Revised Interest Rates for Q1 of FY 2016-17 (01/04/2016 to 30/06/2016)
GoI Notification dt. 20/06/2016: Revised Interest Rates for Q2 of FY 2016-17 (01/07/2016 to 30/09/2016)
GoI Notification dt. 25/09/2016: Revised Interest Rates for Q3 of FY 2016-17 (01/10/2016 to 31/12/2016)
GoI Notification dt. 30/12/2016: Revised Interest Rates for Q4 of FY 2016-17 (01/01/2017 to 31/03/2017)
I am a Senior citizen with no pension benefits. Suppose If I invest Rs. 5 to 10 lakhs in post office MIS or Post Office SCSS at the current rate of interest at 7.7% and 8.5% respectively for 5 years, will the interest rates be constant throughout the period of 5 years or I will get the reduced interest income for my initial deposit due to frequent changes of interest rates (every quarter) for post office savings by GOI. Please advice.
Govt is revising the rates every quarter and so the interest income can reduce/ go up. You can check variation in last few years from above information. It is expected to be always more than fixed deposit rates as these are for senior citizens and pensioners.
The interest rates on deposits to POMIS and SCSS schemes will be driven by the value date by when the amount has been credited to the respective schemes. The applicable rate will not change for the tenure of the deposit. The changes in interest rate, beyond the value date, does not impact the contracted interest rate as per value date,
Timing the investment in a variable interest regime (specific to PO schemes in this case)
Given PO schemes are subjected to changing rates quarter by quarter, deciding quickly makes sense. For example, interest rates are available for Q4 (i.e. 1 Jan. 2017 to 31 Mar. 2017). Beginning 1 Apr. 2017, the interest rates are bound to go down; hence locking down an investment for a tenure of 5 years before 31 Mar. 2017 makes sense than to wait for seeing the revised interest rates effective 1 Apr. 2017 (given all probability of downward movement). Quick decision is key to reaching targeted financial goals.
Reduction in interest rate for small savings used large number common men to earn from saving to meet day to day expenses is cause of concern and frustrating while inflation staying high. Government should ensure that inflation is also brought down by same quantum. Rather Government should better link the interest rate on small savings of common men to the consumer prize index in such a way by keeping margin of 3% over the consumer prize index changes. By this the common men would get some assurance that the saving is not causing erosion and shrinking of his/her living fund.
Government savings schemes are mostly patronised by retired employees of private and public sector companies and they do not have pension benefits. Already they are facing increased medical expenses; and due to their old age and bodily debility, they are forced to engage helpers to look after their personal needs. Interest rate cut by Government will hit them hard. Instead, Government should focus attention on high value bank loan defaulters.
Whether interest rate on SCSS is same throught five years once deposit is accepted or new rate is applicable whenever Govt. changes it whether quarterly or half yearly or yearly ? Secondly, whether rate of interest on SCSS is uniform (same) for all i.e. POST ofice, SBI or any other PSU Banks ?
I require TWO clarifications:
1. As the interest rates for SCSS is being revised on quarterly basis, does it mean that the investment will have a fluctuating rates? To be more specific, if I invest now in this quarter, I will get @ 8.3% pa only for this quarter and for subsequent quarters, the respective announced rates will be applicable-unlike Bank FDs.
2. Can Husband and wife (both having separate PANs) can open individually in both their names each upto Rs.15 lakhs?
1. The prevailing rate of interest at the time of investment is applicable for the entire tenure of the deposit. 8.3 % ROI you get for the entire tenure of deposit.
2. Yes
whether interest earned upto Rs. 50,000 on post office senior citizen saving scheme is exempted under section 80TTB?
I want to invest 5 lakh in NSC. Unable to understand how tax is calculated. Will tax will be deducted or will have to submit form 15G to reclaim the tax deducted from the bank?
Once you are pegged to a certain interest rate applicable to a particular quarter, the interest rate remains constant for rest of the tenure for such scheme.