Latest and Revised Post Office Small Saving Interest rates – Jan to Mar-2019

Latest and Revised Post Office Small Saving Interest rates – Jan to Mar-2019

Few days back, Ministry of Finance announced revised interest rates for post office small saving schemes, applicable for the period January to March-2019 (4th Quarter of FY2018-2019). Recently, many banks have started increasing FD rates. This trend has given an indication, that interest rates may be going up in the future. Ministry of Finance has increased the interest rates of some of the post office saving schemes. What are the latest post office small saving scheme interest rates for January to March 2019? Which is the post office small saving schemes offering highest interest rates compared to bank FD’s or other saving schemes? How is the post office interest rates trend looking in the last 7 quarters?

Also Read: Best Bluechip Mutual Funds to invest now 

Latest and Revised Post Office Small Saving Interest rates – Jan to Mar-2019

This is a good news to investors who are investing in small saving schemes. Small Saving Schemes can be now invested through many banks like ICICI Bank, HDFC and Axis Banks.

Latest and Revised Post Office Small Saving Interest rates – Jan to Mar-2019

Here is the quick snapshot about the latest and revised interest rates, which is applicable from January to March 2019.

1) Among the post office small saving schemes, highest interest rates are being offered on Sr. Citizens Saving Scheme, which is 8.7%.

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 7% to 7.8% per annum from 1 to 5 years tenure. After compounding, the term deposits give a yield of 7.2% to 8.3% per annum. Currently, some banks are offering FD rates, which are between 6% to 7.2% 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 112 months as per latest interest rates. If you want to double your money in banks, you need to deposit for at least over 125 months. KVP is still beneficial compared to bank FD schemes.

5) The Post Office Monthly Income Account (earlier called as MIS) offers 7.7% 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  8.5% interest rates. The maturity amount is tax free. This is still a good small saving investment scheme for Jan to Mar 2019 quarter.

7) If you want to invest your money for child education or for their marriage, you can consider investing in Public Provident Fund (PPF) which offers 8% interest. While the tenure of PPF is for 15 years, it offers safe tax free returns along with tax benefits u/s 80C. If you and your spouse can plan well, you can become Crorepati by investing in PPF along with income tax benefit in 15-20 years time frame.

8) If you are planning to save money every month, you can consider post office recurring deposit which offers up to 7.3% annualized yield. You can invest Rs 1,000 per month in a post office RD scheme for 5 years. You can invest a 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 that is offering 8% interest rates. Otherwise, you can invest in best ELSS tax saving funds.

Latest and Revised Post Office Small Saving Interest rates – Jan to Mar-2019

Latest and Revised Post Office Small Saving Interest rates – Jan to Mar-2019

Also Read: Best Tax Saving Investment Options for 2019

How is the trend looking for Small Saving Schemes Interest Rates in the last 7 Quarters?

Trend of Post Office Small Saving Interest rates – Jan-2018 to Mar-2019 - 7 Quarters

GOI Ministry of Finance notification letter about revised interest rates for small saving schemes is available at this link.

Conclusion: Post Office / 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. You can become Crorepati with popular saving schemes like PPF if you can plan well. If you are a low risk taker, consider investing in small saving schemes offered by the post office.

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Latest and Revised Post Office Small Saving Interest rates – Jan to Mar-2019


  • Vijayakumar Kammar

    The interest rates are same as of last 3 months, nothing new in your article.

  • Amit

    Hello Sir,

    I have both my Bank account & PPF account with Axis Bank.

    Axis bank debited my account on 3rd Jan 2019. However, in my PPF account I can see the deposit on 16th Jan 2019.

    Axis bank held my amount of Rs.1,50,000 from 3rd to 16th Jan. Due to this I lost out on the interest for the complete month.

    When I contacted the bank, they have refused to entertain my complaint.

    Let me know where I can complain.

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