Latest Post Office Small Saving Schemes Interest rates for Apr to Jun-2018

Post Office Small Saving Scheme interest rates for Apr-2018 to Jun-2018 ReviewLatest Post Office Small Saving Schemes Interest rates for Apr to Jun-2018

Yesterday, Ministry of Finance announced latest and revised interest rates for post office saving schemes applicable for the period April-2018 to June-2018 (1st Quarter of FY2018-2019). This time there is some relief to investors who are depending on small saving schemes. Ministry of Finance has not changed any interest rates for Small Saving Schemes. Recently SBI started increasing FD rates and others banks are also following. This gives an indication that interest rates may be up in future. What are the latest post office interest rates for April 2018 to June 2018? Which are the post office small saving schemes offer highest interest rates compared to bank FD’s or other saving schemes? How is the post office interest rates trend looking in the last 5 quarters?

Also Read: LIC's new Bima Shree Money back Insurance Plan – Should you invest?

Latest Post Office Small Saving Schemes Interest rates for Apr to Jun-2018

There is no change in Interest rates this quarter for Apr to Jun-2018 compared to previous quarter. The existing rates and effective yield remains same. This is big relief to investors who are investing in small saving schemes. SBI has hiked the interest rates twice in the last 3 months and other banks too are following this. This gives an indication that in future, interest rates could be increased.

Small Saving Schemes can be now purchased through ICICI Bank, HDFC and Axis Banks.

Also as per recent order, link of Aadhaar number to small saving schemes has been under hold till further order. Earlier the deadline was given till 31st March, 2018.

Revised Post Office Small Saving Schemes Interest rates for Apr to June-2018

Here is the quick snapshot about the latest and revised interest rates which is applicable from April to June, 2018.

1) Among the post office saving schemes, highest interest rates is being offered on Sr. Citizens Saving Scheme which is 8.3%. Earlier even Sukanya Samriddhi Account (SSA) Scheme too used to get highest interest among the small saving schemes. Now SSA offer only 8.1% interest rate for Apr to June 2018 quarter.

2) With compounding of interest rates by a quarter, time deposits and recurring deposits offer high interest rates per annum.

3) Post office time deposit offers 6.6% to 7.4% per annum from 1 to 5 years tenure. After compounding, the term deposits gives yield of 6.8% to 7.6% per annum. Currently many banks have reduced FD rates which are between 4.5% to 7.15% per annum only. Hence Post office Time deposits are best, compared to bank fixed deposit schemes.

4) Investment in Kisan Vikas Patra (KVP) would be doubled after 118 months as per latest interest rates. Till 2 quarters back, the time taken to double your money under KVP was only 115 months. If you want to double your money in banks, you need to deposit for at least 125+ months. KVP is still beneficial compared to bank FD schemes.

5) The Post Office Monthly Income Account (earlier called as MIS) offers 7.3% per annum interest rates, which is payable every month. If you are a retired person, investing in post office monthly income account (earlier called as MIS) is one of the best way to get safe monthly income.

6) If you want to save money for your girl child and get higher returns, you can invest your money in Sukanya Samriddhi Account Scheme which offers  8.1% interest rates. The maturity amount is tax free. You can read the latest review of Sukanya Samriddhi Scheme here.

7) If you want to invest your money for child education or for your daughter marriage, you can consider investing in Public Provident Fund (PPF) which offers 7.6% interest. While the tenure of PPF is for 15 years, it offers highest & Safest tax free returns along with tax benefits u/s 80C.

8) If you are planning to save money every month, you can consider post office recurring deposit which offers up to 6.9% annualized yield. You can invest Rs 1,000 per month in post office RD scheme for 5 years. You can invest minimum of Rs 10 and in multiples of RS 10 there-off.

9) If you are a low risk taker and planning to invest money to save tax,  NSC is one of the best option to invest.

Here are the Revised Post Office Small Saving Schemes Interest rates for Apr to June-2018

Latest and Revised Interest Rates for Small Saving Schemes for Apr-2018 to Jun-2018

Also Read: High Return Short Term Investment Options for 2018

How is the trend looking for Small Saving Schemes Interest Rates in the last 5 Quarters?

Trend of Interest Rates for Small Saving Schemes for Apr-2018 to Jun-2018

Link: GOI Ministry of Finance notification letter.

Conclusion: Small saving schemes offer the highest returns compared other saving schemes and bank FD schemes. Some of the popular schemes like PPF and Sukanya Samriddhi Yojana Scheme offers highest interest rates. If you are a low risk taker, consider investing in small saving schemes offered by the post office.

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Latest Post Office Small Saving Schemes Interest rates for Apr to Jun-2018

The Author

Suresh KP

Suresh KP i.e. me have written 1,800+ articles on this blog. I have done by B.Com from Osmania University and then MBA-Finance from Symbiosis University, Pune. I have over 20 years of experience in analyzing various investment options and money saving ideas. I love doing financial planning, Mutual Fund Analysis, Searching long term Stocks for wealth creation, IPOs, reviewing Insurance Products, analysing Health insurance Plans etc.


Add a Comment
  1. I am 67 yrs old retired before 7 year can i open a/c Dr citizen account of 5years AAA pl reply

  2. Respected Sir ,
    Kindly inform me , can I open 5 year senior citizen saving scheme account in post office or in bank at any time ?

    1. Yes Arun, you can open any time

  3. plan to increase Sr.Citizen Savings Scheme interest Rate  ???

    1. Hi Haresh, As of now there is no such news

  4. Please write an article about encashment of PPF after maturity. I am still investing in PPF although the maturity period is over without any request for extension. Am I eligible for interest for these amounts?


    1. Sure Narayanan. If you have not opted for closure after 15 years, it would auto extend for 5 more years. You can check with bank  / post office where you are maintaining PPF account for more info

  5. It's very helpful information.Thank you very much sir.

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