Revised Interest Rates (Q1 and Q2 of 2017-18) on Small Savings (NSC, PPF, KVP, SSAS, SCSS, etc.)

Latest Govt. Notifications on Revised/ Reduced Interest Rates for Small Savings Schemes (NSC, PPF, KVP, SSAS, SCSS, etc.)

A. Interest Rates on Small Saving Schemes for Q1 and Q2 of FY 2017-18 (i.e. 1 Apr. 2017 ~ 30 Jun. 2017 and 1 Jul. 2017 ~ 30 Sep. 2017)

On the basis of the decision of the Government, interest rates for small savings schemes are being notified by the Government before beginning of the each Quarter since 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.

Accordingly, the Govt. has notified the revised interest rates of various small savings schemes for the period 1 Apr. 2017 to 30 Jun. 2017 and 1 Jul. 2017 to 30 Sep. 2017 (i.e. applicable during the Q1 and Q2 of FY 2017-18) which are mostly based on a cut of 0.1% compared to the corresponding previous periods, as under:

GoI Notification – Revised Interest Rates w.e.f. 1 Apr. 2017 on Small Savings

GoI Notification – Revised Interest Rates w.e.f. 1 Jul. 2017 on Small Savings

In general, the Govt. is pursuing the policy of protecting the interest of small savers, especially savings for the benefit of girl child, the senior citizens, etc. However, it may be noted that a reduction of 0.1% in interest rates on small saving has been effected during Q1 and Q2 of FY 2017-18 across the schemes except the Post Office Savings Account, which has been left untouched since 2015-16.

Summary of Interest Rates Applicable for Small Savings Schemes during Financial Year 2017-18

Summarised table of the revised rates of interest on various small savings schemes for the FY FY 2017-18 (i.e. Q1: 1 Apr. 2017 ~ 30 Jun. 2017 and Q2: 1 Jul. 2017 ~ 30 Sep. 2017) :

InstrumentsInterest Rate (Q1 of 2017-18)Interest Rate (Q2 of 2017-18)
Savings Deposit (SD)4.04.0
1 Year Time Deposit (TD)6.96.8
2 Year Time Deposit (TD)7.06.9
3 Year Time Deposit (TD)7.27.1
5 Year Time Deposit (TD)7.77.6
5 Year Recurring Deposit (RD)7.27.1
5 Year Senior Citizens Savings Scheme (SCSS)8.48.3
5 year Monthly Income Scheme (MIS)7.67.5
5 Year National Savings Certificate (NSC)7.97.8
Public Provident Fund (PPF) Scheme7.97.8
Kisan Vikas Patra (KVP)7.6*7.5**
Sukanya Samriddhi Account Scheme (SSAS)8.48.3

* will mature in 113 months. | ** will mature in 115 months.

B. Interest Rates on Small Saving Schemes for Q1 to Q4 of FY 2016-17 (i.e. 1 Apr. 2016 ~ 31 Mar. 2017)

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 announecd 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 – Revised Interest Rates w.e.f. 1 Apr 2016 on Small Savings

GoI Notification – Revised Interest Rates w.e.f. 1 July 2016 on Small Savings

GoI Notification – Revised Interest Rates w.e.f. 1 Oct. 2016 on Small Savings

GoI Notification – Revised Interest Rates w.e.f. 1 Jan. 2017 on Small Savings

Summary of Interest Rates Applicable for Small Savings Schemes during Financial Year 2015-16 and 2016-17

Summarised table of interest rates on various small savings schemes applicable during the FY 2015-16 (i.e. 1 Apr. 2015 to 31 Mar. 2016) and FY 2016-17 (i.e. Q1: 1 April 2016 ~ 30 June 2016, Q2: 1 July 2016 ~ 30 Sept. 2016, Q3: 1 Oct. 2016 ~ 31 Dec. 2016 and Q4: 1 Jan. 2017 to 31 Mar 2017):

InstrumentsInterest Rate 2015-16Interest Rate (Q1 & Q2) 2016-17Interest Rate (Q3 & Q4) 2016-17
Savings Deposit (SD)4.04.04.0
1 Year Time Deposit (TD)8.47.17.0
2 Year Time Deposit (TD)8.47.27.1
3 Year Time Deposit (TD)8.47.47.3
5 Year Time Deposit (TD)8.57.97.8
5 Year Recurring Deposit (RD)8.47.47.3
5 Year Senior Citizens Savings Scheme (SCSS)9.38.68.5
5 year Monthly Income Scheme (MIS)8.47.87.7
5 Year National Savings Certificate (NSC)8.58.18.0
Public Provident Fund (PPF) Scheme8.78.18.0
Kisan Vikas Patra (KVP)8.77.8*7.7**
Sukanya Samriddhi Account Scheme (SSAS)9.28.68.5

* will mature in 110 months. |** will mature in 112 months.

Latest Interest Rates for Small Savings Schemes

In short we can say that Latest/ New/ Revised Interest Rate for first quarter of FY 2017-18 (i.e. 1 Jul. 2017 – 30 Sep. 2017) are as under:

i) Sukanya Samriddhi Scheme (SSA) – 8.3%,

ii) Public Provident Fund (PPF) – 7.8%,

iii) Senior Citizen Savings Scheme (SCSS) – 8.3%,

iv) Kisan Vikas Patra (KVP) – 7.5%,

v) National Savings Certificate (NSC) – 7.8%,

vi) Post office MIS (Monthly Income Scheme) is 7.5%,

vii) Post Office Recurring Deposit (RD) – 7.1%,

viii) Savings Deposit – 4% and

ix) Post Office Time Deposit – 6.8% to 7.6% based on tenure (as above).

8 Comments

  1. Ramesh B Chilapur February 18, 2017
  2. S. Sivaramakrishnan February 21, 2017
  3. H. Ananthanarayanan March 1, 2017
  4. H. Ananthanarayanan March 1, 2017
  5. Panchali Mukherjee April 3, 2017
  6. Shanker Lal Mandowara April 21, 2017
  7. s. ramasatagopan June 30, 2017
  8. sushil chawathe July 6, 2017

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