The Finance Ministry in its notification had communicated that the rates of interest on various small savings schemes for the Third quarter of the financial year 2018-19 starting October 1 and ending on December31, 2018. There is an increase of 30 to 40 basis in interest rates on various schemes compared to previous quarter.
The effective rates currently are as under.
| Scheme | Rate of Interest
from October1, 2018 to December 31,2018 |
Interest rate for the previous quarter | Interest compounded
On |
| Savings account | 4% | 4% | Annual rest |
| 1 year time deposit | 6.90% | 6.60% | Quarterly rest |
| 2 year time deposit | 7.00% | 6.70% | Quarterly rest |
| 3 year time deposit | 7.20% | 6.90% | Quarterly rest |
| 5 year time deposit | 7.80% | 7.40% | Quarterly rest |
| 5 year Recurring Deposit | 7.30% | 6.90% | Quarterly rest |
| 5 year Senior Citizen Saving Scheme | 8.70% | 8.30% | Interest paid quarterly, Quarterly rest |
| 5 year Monthly Income Account Scheme | 7.70% | 7.30% | Interest paid monthly, |
| 5 year NSC | 8.00 % | 7.60% | Annual rest |
| PPF (Public Provident Fund) | 8.00% | 7.60% | Annual rest |
| KVP (Kissan Vikas Patra) | 7.70 %(matures 112 months) | 7.20% (matures 118 months) | Annual rest |
| Sukanya Samriddhi Account Scheme | 8.50% | 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.
Related articles:
Retired? make informed decisions related to your investments
Figure out the tax saving instruments which suits you most
Know about PPF account benefits
Investments in senior citizens savings scheme
Investment in Sukanya Samriddhi Scheme
Income-tax rebate on the purchase of NSCs
Details on NPS (new pension scheme)
Income-tax-rebate-on-ULIPs
Investments in ELSS (Tax Savings)
Advantages of sovereign gold bonds over physical form of gold
All about different kinds of Mutual funds
Arbitrage funds for risk-free investments
Distinction between liquid fund and ultra-short funds
The Reserve Bank of India today, in its circular informed that during the onsite examination…
Priority Sector lending (PSL) means bank lending to those sectors that the Government of India…
The World Bank was established in 1944 in the name of the International Bank for…
International Monetary Fund (IMF) is an important financial agency of the United Nations and an…
The SDR (Special Drawing Rights) is an international reserve asset created by the IMF as…
The World Trade Organization (WTO) is an intergovernmental organization established on January 1, 1995, replacing…