Interest Rates of Government Small Savings Schemes

Government cuts interest rates on small saving schemes effective from April 1. These rates of interest available for the first quarter of  the financial year 2021-22 from 1 April to 30 June. Next quarter may be the same or maybe change in interest rates.

Government small saving schemes

  1. Savings Deposit
  2. Time Deposit
  3. 5 years recurring Deposit
  4. Senior Citizen Savings Schemes
  5. Monthly Income Scheme
  6. National Saving Certificate (NSC)
  7. Public Provident Fund (PPF)
  8. Kisan Vikas Patra (KVP)
  9. Sukanya Samriddhi Scheme

Post Office Schemes

Generally, we know above the schemes as Post Office saving schemes. These schemes are the first choice of investor looking for fixed and assured income. PPF and Sukanya Samriddi schemes comes with tax benefits under Section 80c. All of them are government-backed investments wherein the principal invested and the interest earned are guaranteed by the government.   

Already invested or newly invest within 1 April to 30 June will be applicable for these interest rates.

Interest rates below 7%

According to the circular issued by the Ministry of Finance, small saving schemes have been reduced interest rates and also below 7%.

PPF and Sukanya Samriddi Scheme

PPF and Sukanya Samriddi Schemes(for Girl Child) are the most common investment to everyone with higher interest rate and tax-saving instruments. Now Interest rate of PPF is reduced from 7.1 to 6.4 and Sukanya Samriddhi Scheme is reduced from 7.6 to 6.9. 


KVP is reduced from 6.9 to 6.2 whereas the maturity period of KVP is also increased from 10 years 4 months to 11 years 5 months.

Quarterly Basis

The interest rates of small savings schemes are reviewed and announced by the Ministry of Finance every quarter.


Revision of Interest Rates for Small Savings Schemes for Q1 of 2021-22

Revision of interest rates for Small Saving Scheme

Investment securities Interest Rates from 01-01-2021 to 31-03-2021 Interest Rates from 01-04-2021 to 30-06-2021
Saving Deposit 4.0 3.5
1 year Time Deposit 5.5 4.4
2 year Time Deposit 5.5 5.0
3 year Time Deposit 5.5 5.1
5 year Time Deposit 6.7 5.8
5 year Recurring Deposit 5.8 5.3
Senior Citizen Saving Schemes 7.4 6.5
Monthly Income Scheme 6.6 5.7
National Saving Certificate 6.8 5.9
Public Provident Fund 7.1 6.4
Kisan Vikas Patra 6.9 (maturity in 124 months) 6.2 (maturity in 138 months)
Sukanya Samriddhi Scheme 7.6 6.9


This announcement is a big shock for safe investor. Anyway keep investing and looking forward next quarter should be a higher.

Federal247 [CPL] IN

Happy Saving

Basicslife [CPS] In
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