PPF, Sukanya Samriddhi, NSC, KVP Interest Rates July-Sept 2017

The government announced the interest rate for PPF, Sukanya Samriddhi, NSC, KVP Interest Rates July-Sept 2017 on 30th June 2017. Let us see the changes applicable with effective from 1st April 2017.

Earlier the interest rates used to be announced on yearly once. However, now from 2016-17, the rate of interest will be fixed on a quarterly basis. I already wrote a detailed post on this. I am providing the links to those earlier posts below.

Based on these new changes, now onward interest rate will be declared on a quarterly basis. The earlier quarters (FY 2016-17 and FY 2017-18) interest rate can be viewed in my earlier posts “Interest of PPF KVP NSC SCSS and Sukanya Samriddhi for April-June 2016“, “PPF and Sukanya Samriddhi Scheme interest rate July-Sept 2016“, “PPF, Sukanya Samriddhi, NSC, KVP Interest Rates Oct-Dec 2016”, “PPF, Sukanya Samriddhi, NSC, KVP Interest Rates Jan-Mar 2017“ and “PPF, Sukanya Samriddhi, NSC, KVP Interest Rates April-June 2017“.

Below is the timetable for change in interest rates for all Post Office Savings Schemes.Post Office Interest Rate changing Time Table

Now as per the schedule, Government announced the interest rate applicable to all Post Office Savings Schemes from 1st July 2017 to 30th September 2017.

PPF, Sukanya Samriddhi, NSC, KVP Interest Rates July-Sept 2017

Just for a quick recap, Government reduced the interest rate of all products by 0.1% or 10 BPS (100 BPS=1%). Below is the PPF, Sukanya Samriddhi, NSC, KVP Interest Rates July-Sept 2017. Also, I have listed all Post Office Saving Schemes interest rate for July-Sept 2017.

Revised PPF, Sukanya Samriddhi, NSC, KVP Interest Rates July-Sept 2017.jpg

Note:-Earlier the KVP (Kisan Vikas Patra) used to double in 113 months. Now, it will take 115 months to double.

You notice that except savings account interest rate, Government reduced 0.10% for all the schemes. However, if you notice, then Sukanya Samriddhi Scheme and SCSS are still fetching you a higher return than any other Post Office Schemes.

Below is the interest rate trend for FY 2016-17 and FY 2017-18.

Post Office Savings Schemes Interest rates from FY 2016-17 to FY 2017-18.jpg

You notice that for savings account there is no change. However, for all other schemes, the interest rate is going down in each quarter slowly. Hard to digest but no option for many who completely rely on such savings options.

Refer our earlier posts related to Post Office Savings Schemes-

25 Responses

  1. Hello Basu,
    Thank you for sharing valuable information and your guidance.

    Myself belong to middle class family having two kids (daughter, 8 years and 2 years). Single earning source of my family and have small business setup.

    Currently I am holding 5 lakhs in bank and would like to investment based on my below requirements.
    1. Don’t want to take too much of risk.
    2. I want to invest for long term so that my daughters will benefit in future.
    3. Already have Sukanya Samruddhi account opened for one of my daughter.
    4. So far no investment in market or any other Mutual funds.
    5. would like to have secure investment as my risk tolerance is not very low.

    can you please suggest a way out here? thank in advance. Prasad.

  2. Sir, Till few months ago for any the financial information and analysis I used to google, but in recent past your blog serves all purposes on every financial interests. (Unlike many blogges use their site to advertise or influence any product) More over you responses for any queries are taken care with quick responses. I Have actually started an Term Policy and NPS after analysing through your blog. Kudos for your service and keep helping us.

  3. My wife is an nri. There are co operative banks in kerala which offer 8.25% interest one one year deposit. My question is can an nri nvest in co operative banks ? And also is there any tds for a deposit of 3lakhs

  4. I am a senior citizen of age 69 years. My spouse is 62 years old. My retirement benefits (PF, Gratuity) were invested in Bank FDs for 3 year period at 9.8 % pa. Interest is cumulative every quarter. Effective rate becomes 10.16%. The present rate of interest is not attractive in bank deposits.
    I would like to invest some part in a scheme where I get monthly interest and some in cumulative interest scheme. The interest earned if it is taxable also is ok since I will be within 3 Lakhs limit practically.
    I have two grand children.
    Kindly advise.

  5. Hi Basavaraj

    checked the interest rate on NSC at the official site of Indian Post. The interest rate mentioned there is still 7.9%.

  6. Am having kid about 5years (boy) and like to invest for his studies (Rs 2000 to 3000 per month).
    Can you please advise the suitable schemes which can give better results in long term?

  7. dear basavaraj sir,

    I am very confused with my miss match in name in banks,PF ,aadhar ,licence .pl guide me
    licence — suresh NR(contiued from 1998)
    AADHAR – suresh nandawar ranganath(2010)
    pan – suresh nandawar Ranganath ( 2000)

    pf — suresh N R(1998)
    Company — suresh NR(1998)
    BANK — Suresh nandavar Ranganath(1998)
    now i want to change as per pan & aadhhar ,bank icici refusing to change name ,pl guide me

    1. Suresh-May I know which are they? Better you share here so that others also come to know. Also, as per me, there was an error about PPF when creating a sheet , which I corrected. Let me know if you found any other erros.

  8. It seems Government is encouraging people to invest in Mutual Funds instead of Small Saving Schemes. SCSS interest would also have be reduced to 8.3% accordingly.

    Difficult days ahead for people relying on Small Saving Schemes for investment purpose!

    Thanks for update.

  9. In PPF,i know that it is changing every Q and in NSC too.. now i am confused about NSC,in NSC Once we bought it @ around suppose 8% for 10 year than till 10th year will it be same or keep changing Q?i know it is changes on Q basis but once we bought than after also will it change on every Q?

    1. Akshat-In case of NSC, it will not change. It is exactly like your Bank FD. However, in case of PPF, the interest rate change will affect you. Also, for your information, now NSC of 10 years stopped long back.

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