Latest Post Office Small Saving Schemes Interest rates Oct – Dec 2020 | Q3 of FY 2020-21

The Reserve Bank of India (RBI) has been cutting the key policy rates to mitigate Covid-19 impact. Also, most of the banks and financial institutions have already been reducing the interest rates on their deposits schemes.

So, as widely anticipated, the central Govt had announced a steep cut in the interest rates on small savings schemes for the first quarter (April to June) of FY 2020-21. Interest rates on various small savings schemes have been cut anywhere between 70 basis points and 140 basis points (100 basis points = 1 per cent).

However, the interest rates on small savings schemes have been kept unchanged by the government for the Second quarter of FY 2020-21, i.e., July-September.

Maintaining the trend, the interest rates on Post office schemes for Quarter-3 (Oct, Nov & Dec) have also been kept UNCHANGED.

The government keeping interest rates on small savings schemes will come as a relief for many fixed income investors.

Ministry of finance circular notification on Latest post office schemes interest rates oct to dec 2020
Govt Notification on the Latest Small Savings Schemes Interest Rates | Q3 FY 2020-21

The National Savings Schemes (NSSs) are one of the very popular saving schemes in India. These are regulated by the Ministry of Finance. They offer complete security of investment combined with attractive returns.

These schemes also act as instruments of financial inclusion especially in the geographically inaccessible areas due to their implementation primarily through the Post Offices, which have reach far and wide.

Some of the very popular schemes which fall under NSS are as below;

  • PPF (Public Provident Fund)
  • Sukanya Samriddhi Scheme
  • Monthly Income Scheme (Monthly Income Account)
  • Senior Citizen Savings Scheme
  • KVP (Kisan Vikas Patra)
  • NSC (National Savings Certificate)
  • Time Deposits &
  • Recurring Deposits

Latest Post Office Small Saving Schemes Interest rates Oct – Dec 2020

The latest rates of interest applicable on various small savings schemes for the quarter from October to December 2020 effective from 1.10.2020 would be as below;

Post Office Small Saving Schemes Interest rates Oct – Dec 2020  Quarter 3 FY 2020-2021 PPF SSA NSC MIS SCSS KVP
Latest Post office Small Saving Schemes Interest Rates Table (Oct – Dec 2020)

Latest Interest Rate on Sukanya Samriddhi Scheme, PPF, MIS, NSC | Quarter 3 of FY 2020-21

The latest rates of interest applicable on various small savings schemes for the first quarter from October to December 2020 effective from 1-10-2020 would be as below;

  • The latest interest rate on Sukanya Samriddhi Scheme (SSA ) is 7.6%.
  • The new rate of Interest on PPF (Public Provident Fund) would be 7.1%.
  • The interest rate on Senior Citizen Savings Scheme (SCSS) has been reduced to 7.4%.
  • New interest rate on Kisan Vikas Patra (KVP) would be 6.9%.
  • The rate of interest on 5 year National Savings Certificate (NSC) is 6.8%.
  • New interest rate on post office MIS (Monthly Income Scheme) is 6.6%.
  • The rate of interest on a 5 year Post Office RD (Recurring Deposit) would be 5.8%.

Kindly note that interest rates of Small Savings Schemes are now reviewed and reset (if any) on a quarterly basis.

Small Saving Schemes interest rate revision quarterly basis FY 2017 2018

The revised rates (if any) are applicable for all the new investments MADE during the respective period.

For the existing investments under all the schemes (EXCEPT PPF & SUKANYA SAMRIDDHI SCHEME), the contracted interest rate remains unchanged until maturity.

Continue reading:

  1. How & Where do Indian Households Save / Invest? | RBI’s latest Statistical Data
  2. Top 22 Popular Investment options in India – Features & Snapshot
  3. Lump sum Investment options for Retirees/Senior Citizens | Where to invest my Retiral benefits to get Regular Income?
  4. 15 Q&As on Fixed Deposit Interest Income Taxation Rules (FY 2019-20)
  5. Income Tax Deductions List FY 2020-21 | New Vs Old Tax Regime AY 2021-22

(Post first published on : 30-Sep-2020)

  • Ravi says:

    Hi Sreekanth,

    Please write an article/post on LTC cash voucher scheme introduced by central govt for the employees.

    Thanks in advance.

  • Raja says:

    Hi Sir,
    I have query on Post office PPF account. I have already a PPF account on my own. I am planning to open a PPF account separately for my 2 Kids. (Separate account for each kids).
    Is it Ok, to have 3 PPF account on the same PAN?

  • sauradeepdhargmailcom says:

    Posts office

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