Category: Interest Rate

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SB Order 7/2021 : Revision of Interest rates for National (Small) Savings Schemes w.e.f 01/04/2021

Rate of interest on various Small Savings Schemes (National Savings Schemes) for the first quarter of financial year 2021-22 – SB Order 7/2021

SB Order 7/2021

e.F.No 113-03/2017-SB(Pt.1)
Govt. of India
Ministry of Communications
Department of Posts (FS Division)

Dak Bhawan, New Delhi-110001
Dated: 01.04.2021

To,

All Head of Circles/Regions

Subject: Revision of interest rates for National (Small) Savings Schemes w.e.f 01.04.2021

Sir/Madam,

The undersigned is directed to say that vide memorandum No. 114/2019-NS dated 01.04.2021 (copy enclosed), Govt. of India, Ministry of Finance, Department of Economic Affairs (Budget Division) have informed that the rate of interest on various Small Savings Schemes (National Savings Schemes) for the first quarter of financial year 2021-22 (starting from 1st April, 2021 and ending on 30th June, 2021) shall remain unchanged from those notified for the fourth quarter of Financial Year 2020-21 (01st January, 2021 to 31st March, 2021). The details are indicated below for ready reference: –

SI.InstrumentsRate of interestRate of interestCompounding
01.Post Office Savings Account4.04.0Annually
02.1 Year Time Deposit5.55.5Quarterly
03.2 Year Time Deposit5.55.5Quarterly
04.3 Year Time Deposit5.55.5Quarterly
05.5 Year Time Deposit6.76.7Quarterly
06.5 Year Recurring Deposit Scheme5.85.8Quarterly
07.Senior Citizen Savings Scheme7.47.4Quarterly and Paid
08.Monthly Income Account6.66.6Monthly and paid
09.National Savings Certificate (VIIIth  Issue)6.86.8Annually
10.Public Provident Fund Scheme7.17.1Annually
11.Kisan Vikas Patra6.9 (will mature in 124 months)6.9 (will mature   in   124 months)Annually
12.Sukanya  Samriddhi  Account Scheme7.67.6Annually

2. It is requested to circulate it to all concerned for information and necessary guidance. Same may also be placed on the notice board of all Post Offices in public area.

3. This issues with the approval of Competent Authority.

Yours Faithfully

T C Vijayan
Assistant Director SB – I

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Post Office interest Rate from 1968 to till date.

post office interest rate from 1968

Post Office interest Rate from 1968 to till date.

 

Sl No From Date To Date SB RD 1TD 2TD 3TD 5TD MIS PPF SSA SCS S KVP NSCVIII NSC IX
1 01/04/1968 31/12/1970 3.5 0 0 0 0 0 0 0 0 0 0 0 0
2 01/01/1971 31/07/1973 4 0 0 0 0 0 0 0 0 0 0 0 0
3 01/08/1973 31/03/1974 4 0 8 8.5 9 10 0 0 0 0 0 0 0
4 01/04/1974 30/09/1976 5 0 8 8.5 9 10 0 0 0 0 0 0 0
5 01/10/1976 28/02/1978 5 9.0725 8 8.5 9 10 0 0 0 0 0 0 0
6 01/03/1978 30/09/1979 5 9.0725 7 7.5 8 10 0 0 0 0 0 0 0
7 01/10/1979 31/03/1980 5.5 9.953 8 8.5 9 10.5 0 0 0 0 0 0 0
8 01/04/1980 01/03/1981 5.5 9.953 8 8.5 9 10.5 0 8 0 0 0 0 0
9 02/03/1981 31/03/1981 5.5 9.953 8.5 9.5 10.5 10.5 0 8 0 0 0 0 0
10 01/04/1981 31/03/1982 5.5 9.953 8.5 9.5 10.5 10.5 0 8.5 0 0 0 0 0
11 01/04/1982 28/02/1983 5.5 10.368 9 9.75 10.5 10.5 0 8.5 0 0 0 0 0
12 01/03/1983 31/03/1983 5.5 11.338 9 9.75 10.5 11.5 0 8.5 0 0 0 0 0
13 01/04/1983 31/03/1985 5.5 11.338 9 9.75 10.5 11.5 0 9 0 0 0 0 0
14 01/04/1985 09/05/1985 5.5 11.338 9 9.75 10.5 11.5 0 10 0 0 0 0 0
15 10/05/1985 31/03/1986 5.5 11.338 9.5 10 10.5 11.5 0 10 0 0 0 0 0
16 01/04/1986 31/03/1987 5.5 11.338 9.5 10 10.5 11.5 0 12 0 0 0 0 0
17 01/04/1987 14/08/1987 5.5 11.001 9.5 10 10.5 11 0 12 0 0 0 0 0
18 15/08/1987 31/03/1988 5.5 11.001 9.5 10 10.5 11 12 12 0 0 0 0 0
19 01/04/1988 07/05/1989 5.5 11.001 9.5 10 10.5 11 12 12 0 0 14.4 0 0
20 08/05/1989 31/03/1991 5.5 11.001 9.5 10 10.5 11 12 12 0 0 14.4 12 0
21 01/04/1991 30/09/1991 5.5 11.498 9 10 11 11.5 12 12 0 0 14.4 12 0
22 01/10/1991 15/12/1991 5.5 13.502 10 11 13 13.5 12 12 0 0 14.4 12 0
23 16/12/1991 23/04/1992 5.5 13.502 12 12 13 13.5 12 12 0 0 13 12 0
24 24/04/1992 01/09/1993 5.5 13.502 12 12 13 13.5 14 12 0 0 14.4 12 0
25 02/09/1993 31/12/1998 5.5 12.501 10.5 11 12 12.5 13 12 0 0 13 12 0
26 01/01/1999 31/12/1999 4.5 11.5 9 10 11 11.5 12 12 0 0 11.9 11.5 0
27 01/01/2000 14/01/2000 4.5 11.5 9 10 11 11.5 12 11.44 0 0 11.9 11.5 0
28 15/01/2000 31/01/2000 4.5 10.5 8 9 10 10.5 11 11.44 0 0 11 11 0
29 01/02/2000 28/02/2001 4.5 10.5 8 9 10 10.5 11 11 0 0 11 11 0
30 01/03/2001 28/02/2002 3.5 9 7.5 8 9 9 9.5 9.5 0 0 9.8 9.5 0
31 01/03/2002 28/02/2003 3.5 8.5 7.25 7.5 8.25 8.5 9 9 0 0 9.3 9 0
32 01/03/2003 01/08/2004 3.5 7.5 6.25 6.5 7.25 7.5 8 8 0 0 8.4 8 0
33 02/08/2004 30/11/2011 3.5 7.5 6.25 6.5 7.25 7.5 8 8 0 9 8.4 8 0
34 01/12/2011 31/03/2012 4 8 7.7 7.8 8 8.3 8.2 8.6 0 9 0 8.4 8.7
35 01/04/2012 31/03/2013 4 8.4 8.2 8.3 8.4 8.5 8.5 8.8 0 9.3 0 8.6 8.9
36 01/04/2013 31/03/2014 4 8.3 8.2 8.2 8.3 8.4 8.4 8.7 0 9.2 0 8.5 8.8
37 01/04/2014 17/11/2014 4 8.4 8.4 8.4 8.4 8.5 8.4 8.7 0 9.2 0 8.5 8.8
38 18/11/2014 20/01/2015 4 8.4 8.4 8.4 8.4 8.5 8.4 8.7 0 9.2 8.7 8.5 8.8
39 21/01/2015 31/03/2015 4 8.4 8.4 8.4 8.4 8.5 8.4 8.7 9.1 9.2 8.7 8.5 8.8
40 01/04/2015 31/03/2016 4 8.4 8.4 8.4 8.4 8.5 8.4 8.7 9.2 9.3 8.7 8.5 8.8
41 01/04/2016 30/09/2016 4 7.4 7.1 7.2 7.4 7.9 7.8 8.1 8.6 8.6 7.8 8.1 0
42 01/10/2016 31/03/2017 4 7.3 7 7.1 7.3 7.8 7.7 8 8.5 8.5 7.7 8 0
43 01/04/2017 30/06/2017 4 7.2 6.9 7 7.2 7.7 7.6 7.9 8.4 8.4 7.6 7.9 0
44 01/07/2017 01/12/2017 4 7.1 6.8 6.9 7.1 7.6 7.5 7.8 8.3 8.3 7.5 7.8 0
45 01/01/2018 30/09/2018 4 6.9 6.6 6.7 6.9 7.4 7.3 7.6 8.1 8.3 7.3 7.6 0
46 01/10/2018 31/12/2018 4 7.3 6.9 7 7.2 7.8 7.7 8 8.5 8.7 7.7 8 0
47 01/01/2019 31/03/2019 4 7.3 7 7 7 7.8 7.7 8 8.5 8.7 7.7 8 0
48 01/04/2019 30/06/2019 4 7.3 7 7 7 7.8 7.7 8 8.5 8.7 7.7 8 0
49 01/07/2019 30/09/2019 4 7.2 6.9 6.9 6.9 7.7 7.6 7.9 8.4 8.6 7.6 7.9 0
50 01/10/2019 31/03/2020 4 7.2 6.9 6.9 6.9 7.7 7.6 7.9 8.4 8.6 7.6 7.9 0
51 01/04/2020 31/12/2099 4 5.8 5.5 5.5 5.5 6.7 6.6 7.1 7.6 7.4 6.9 6.8 0
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Interest on PPF, NSC, other small savings schemes may come down soon

  • Interest rate on small savings schemes for April to June quarter will be announced this month-end
  • Rates on small savings schemes, including PPF, are revised on quarterly basis

The government is considering a cut in interest rate on small savings schemes like Post Office deposits, Public Provident Fund (PPF), National Savings Certificate (NSC), and Senior Citizen Savings Scheme, Press Trust of India reported, citing sources. Interest rate on small savings schemes for April to June quarter will be announced this month-end.
interest may come down soon in post office small savings scheme

Despite a moderation of overall interest rate in the financial system, the government kept interest rate on small savings schemes steady for the January to March quarter. Bankers have been complaining that high rates on small savings schemes prohibit them from cutting deposit rates aggressively even though India’s biggest bank State Bank of India has cut fixed deposit rates aggressively this quarter. For example, currently five-year SBI fixed deposit fetches just 5.9%.

Rates on small savings schemes are revised on quarterly basis. Currently, PPF and NSC fetch interest rate of 7.9%. The 5-year Senior Citizens Savings Scheme currently offer an interest rate of 8.6% while post office savings deposits fetch 4%.

SBI had recently lowered interest rate on retail deposits to 3% from 3.25% earlier.

The girl child savings scheme Sukanya Samriddhi Account fetches 8.4% (compounded annually).

Since April 2016, interest rates on small saving schemes are being revised on a quarterly basis. However, the formula for fixing small savings rates based on comparable yields on government securities, as recommended by Shyamala Gopinath committee, has however not been strictly followed in some quarters.

“Had the government followed the formulas strictly, rates on different small savings instruments would now have been lower by 80-160 bps,” SBI Research said in a recent note. If the government had strictly followed the formula, PPF would have fetched around 7% this quarter, instead of current level of 7.9%.