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Interest rates on Small Savings Scheme from July 2018

Interest rates on Small Savings Scheme from July 2018

The Finance Ministry in its notification had communicated that the rates of interest on various small savings schemes for the second quarter of the financial year 2018-19 starting July 1 and ending on September 30, 2018 shall remain unchanged from those notified for the fourth quarter of the financial year 2017-18.

The effective rates currently  are  as under.

Scheme Rate of Interest


April  2018 to

June 30,2018

Interest rate for the previous quarter Interest compounded


Savings account 4% 4% Annual  rest
1 year time deposit 6.60% 6.60% Quarterly rest
2 year time deposit 6.70% 6.70% Quarterly rest
3 year time deposit 6.90% 6.90% Quarterly rest
5 year time deposit 7.40% 7.40% Quarterly rest
5 year Recurring Deposit 6.90% 6.90% 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% 7.30% Interest paid monthly,
5 year NSC 7.60 % 7.60% Annual rest
PPF (Public Provident Fund) 7.60% 7.60% Annual rest
KVP (Kissan Vikas Patra) 7.30 %(matures 118months) 7.20% (matures 118 months) Annual rest
Sukanya Samriddhi Account Scheme 8.10% 8.10% 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.

During announcement of interest for the quarter April -Jun 18, the Ministry withdrew the earlier  restrictions  for credit of interest in respect of small savings   to basic Savings Bank account. Now all the interest and maturity proceeds of small savings instruments operated by the Department of Posts may be paid to the depositors through the depositor’s savings account standing at a post office or any commercial bank, by cheque or in cash.

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