Post Office Small Saving Schemes Interest rates July – Sep 2019 | Q2 of FY 2019-20

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.

It is estimated that nearly $137 billion or over Rs. 9 lakh crore are tied up in small savings schemes.

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 July – Sep 2019

The government has reduced interest rate on small savings schemes by 0.1 per cent for the July-September quarter of FY 2019-20 (except the interest rate on Savings Deposit account which is @ 4%).

The decision is aimed at matching the softening of interest rates in the banking sector after the RBI cut its benchmark policy rate thrice during the year.

RBI-cuts-repo-rate-impact-on-your-loan-EMIs-pic
RBI cuts key Interest rates – June 2019

The latest rates of interest applicable on various small savings schemes for the quarter from July to September 2019 effective from 1.07.2019 would be as below;

Latest Revised Post Office Small Saving Schemes Interest rates July - Sep 2019 Quarter 2 FY 2019-2020 PPF SSA NSC MIS SCSS KVP
Latest Post Office Small Saving Schemes Interest rates July – Sep 2019 Quarter 2 FY 2019-2020
  • The latest interest rate on Sukanya Samriddhi Scheme (SSA ) is 8.4%.
  • The new rate of Interest on PPF (Public Provident Fund) would be 7.9%.
  • The interest rate on Senior Citizen Savings Scheme (SCSS) has been retained same at 8.6%.
  • New interest rate on Kisan Vikas Patra (KVP) would be 7.6%.
  • The rate of interest on 5 year National Savings Certificate (NSC) is 7.9%.
  • New interest rate on post office MIS (Monthly Income Scheme) is 7.6%.
  • The rate of interest on a 5 year Post Office RD (Recurring Deposit) would be 7.7%.

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(Post first published on : 28-June-2019)

  • Lucky verma says:

    very good article and i like this your post

    thanks

  • Bikas says:

    Thanks for your article! I’ve few questions- I’m a salaried person in Pvt. company. Interest earned on EPF while I’m still working in that company, is taxable ? Do I need to show that income in ITR? If yes, where to show that interest income in ITR (club with FD interest as taxable income; or club with PPF interest as exempt income) ? And for both component of interest, employee and employer’s share ?

    • Sreekanth Reddy says:

      Dear Bikas,
      No, it is tax-exempt income.
      You can disclose it as an exempt income.

      Kindly read : EPF Interest Income & Withdrawals | Tax Implications | Is EPF Interest taxable?

      • Bikas says:

        Do I need to add both component of interest, employee and employer’s share ? Or only employee’s share ?
        Also please help me to identify the interest statement in EPFO passbook.

        Is the below line shows the interest value considered for FY 2018-19?

        Int. Updated upto 31/03/2018 5,099 1,739

        • Sreekanth Reddy says:

          Dear Bikas,
          The total interest can be declared. You would have got FY 2017-18 interest during July-Dec 2018 period.

          • Bikas says:

            Dear Sir, thanks for quick response. But I could not get answer of my question-

            Does the below line shows the interest value considered for FY 2018-19?

            Int. Updated upto 31/03/2018 5,099 1,739

            Thanks again for endeavor of helping people. God bless you!

          • Sreekanth Reddy says:

            Dear Bikas,
            The interest amount for the period 2018-19 would be paid during July – Dec 2019 period.

          • Bikas says:

            Dear Sir,

            Thank you for your reply.
            But my EPF statement shows only one interest statement per year, like below-

            Int. Updated upto 31/03/2017
            Int. Updated upto 31/03/2018

            I think the statement dated 31/03/2018 is the statement for FY2018-19. Kindly confirm if I’m right.

          • Sreekanth Reddy says:

            Dear Bikas,
            Yes, it is for FY 2018-19 or ITR AY 2019-20 one.

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