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Interest rates on Small Savings Scheme from Jan 2018

Interest rates on Small Savings Scheme from Jan 2018

Effective from Jan 1st,2018, the finance ministry cuts interest rate on Small Savings are slashed. Small savings schemes such as NSC, PPF,KVP, Sukanya Samriddhi account, Post office Term deposits,  National Savings Certificate (NSC), Provident Fund (PPF) by 20 basis points but spared SCSS.It is widely believed that it is a move that will prompt banks to lower deposit rates.

The revised rates effective from January 2018 is as under.

Scheme Rate of Interest


Jan 2018 to

March 31,2018

Interest rate for the previous quarter Interest compounded


Savings account 4% 4% Annual  rest
1 year time deposit 6.60% 6.80% Quarterly rest
2 year time deposit 6.70% 6.90% Quarterly rest
3 year time deposit 6.90% 7.10% Quarterly rest
5 year time deposit 7.40% 7.60% Quarterly rest
5 year Recurring Deposit 6.90% 7.10% Quarterly rest
5 year Senior Citizen Saving Scheme 8.30% 8.30% Interest paid quarterly, Quarterly rest
5 year Monthly Income Account Scheme 7.30% 7.50% Interest paid monthly,
5 year NSC 7.60 % 7.80% Annual rest
PPF (Public Provident Fund) 7.60% 7.80% Annual rest
KVP (Kissan Vikas Patra) 7.30 %(matures 118months) 7.50% (matures 115 months) Annual rest
Sukanya Samriddhi Account Scheme 8.10% 8.30% Annual rest


The government had announced in February 2016 that small savings rates will be set quarterly instead of earlier system of announcing for every year so as to align them with the market rate of government securities.


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