Small savings scheme interest rate for every scheme this quarter

Small savings scheme interest rate table for October to December

Every rate above is a yearly rate. How often interest is added changes what you actually earn, which is why a 7.5% deposit and a 7.5% certificate do not give exactly the same money.

What each rate means in rupees

A headline rate is easier to judge once it is turned into money. These figures use ₹1 lakh, or ₹1,000 a month for RD.

To try your own amount, use the post office FD calculator or the calculator on each scheme page.

How the government decides the rate of interest in post office schemes

Since small savings rates were linked to the market, each scheme's rate follows the yield on government securities of a similar term, plus a small spread. The ministry reviews them every quarter and publishes an office memorandum a few days before the quarter starts.

In practice the ministry also weighs other things, such as bank deposit rates and the need to keep household savings coming in. That is why post office rates sometimes stay put even when bond yields move a little.

Locked rate or new rate: what happens to money you already deposited

This is the question savers ask most after a rate change. The answer depends on the scheme.

So if you put money into a 5 year NSC today at 7.7%, you keep that rate even if the next quarter's rate falls. A PPF balance, on the other hand, earns whatever rate applies in each quarter of its life.

Highest interest rate in post office right now

The highest post office rate is 8.2% on SCSS, which shares the top spot with Sukanya Samriddhi. Both are restricted: SCSS needs you to be 60 or older (with a few exceptions for retirees), and Sukanya is only for a girl child.

For savers who fit neither, NSC at 7.7% is the best open rate, followed by the 5 year FD and KVP at 7.5%. The ranking changes with your goal, so see which post office scheme is best before you pick by rate alone.

How post office rates compare with bank deposits

Large banks often pay a little less than the post office on 5 year deposits, and a little more on some short terms when they run special offers. Senior citizens get an extra rate at most banks but not at the post office, except through SCSS.

The bigger difference is safety and rules. Post office deposits are owed by the government, with no cover limit. Bank deposits are insured up to ₹5 lakh per bank per depositor. Bank FDs are easier to break early. Our FD guide for senior citizens lays out these trade offs.

How rates moved over recent years, without the noise

Small savings rates were cut sharply a few years ago when bond yields fell, then raised in steps as yields rose. NSC, for example, sat at 6.8% for a long stretch, rose to 7.0%, then to 7.7%. KVP went from 6.9% to 7.5% over the same climb, and its doubling time shrank from 124 months to 115.

Since then the rates have stayed flat quarter after quarter. Nobody can promise the next move, so if a rate suits you today, the safe way to keep it is a fixed term scheme rather than waiting.

Where to check the rate on your own account

• Your passbook or e certificate shows the rate and maturity date.
• India Post internet banking lists every account with its rate.
• The post office counter can print a statement on request.

If the rate on your receipt does not match the board for the date you invested, ask the counter to correct it at once. Errors are rare but much easier to fix early.