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

June 30, 2017by Basavaraj Tonagatti

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.

  • Post Office Savings Schemes -Changes effective from 1st, April 2016
  • Premature closure of PPF account – New Rules 2016

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-

  • All about Public Provident Fund (PPF)
  • How to encash or withdraw NSC bought from different Post Office?
  • NSC-Accrued Interest taxation and way to reduce it
  • Post Office Monthly Income Scheme or MIS – A complete guide
  • Premature closure of PPF account – New Rules 2016
  • PPF withdrawal rules & options after 15 years maturity
  • Public Provident Fund -20 unknown facts
  • 15 Rules of availing Loan against PPF (Public Provident Fund)
  • How to transfer PPF Account from Post Office or Bank to another Post Office or Bank?
  • Excel PPF Calculator-Calculate goal, loan or withdrawal amounts
  • PPF-Loan and Withdrawal
  • PPF-When to contribute to get higher returns?
  • All about Kisan Vikas Patra (KVP)-2014
  • Sukanya Samriddhi Account -When to invest to earn more returns?
  • Sukanya Samriddhi Account-An investment scheme for your girl child
  • Post Office Senior Citizen Scheme (SCSS)-Benefits and Interest Rate
  • NSC and KVP in e-mode and Passbook mode from 1st July 2016
  • How to transfer NSC from one person to another?
  • India Post Help Centre and a Toll-Free Number 1924 features
Category: Investment PlanningTag: KVP Interest Rates July-Sept 2017, nsc, PPF, Sukanya Samriddhi

About Basavaraj Tonagatti

Basavaraj Tonagatti is the man behind this blog. He is SEBI Registered Investment Adviser who is practicing Fee-Only Financial Planning Process and also an Independent Certified Financial Planner (CFP), engaged in blogging since 7 years. BasuNivesh blog is ranked as one among India's Top 10 Personal Finance Blog. He is not associated with any Financial product/service provider. The purpose of this blog is to "Spread personal finance awareness and make them to take informed financial decisions." Please note that the views given in this Blog/Comments Section/Forum are clarifications meant for reference and guidance of the readers to explore further on the topics/queries raised and take informed decisions. These should not be construed as investment advice or legal opinion."

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Reader Interactions

Comments

  1. Prasad

    August 31, 2017 at 1:58 PM

    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.

    Reply
    • Basavaraj Tonagatti

      August 31, 2017 at 2:52 PM

      Prasad-Invest 60% in Ultra Short Term Debt Funds and 40% in the large-cap mutual fund (Refer-“Top 10 Best SIP Mutual Funds to invest in India in 2017“.)

      Reply
  2. Balaji

    August 15, 2017 at 11:30 AM

    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.

    Reply
    • Basavaraj Tonagatti

      August 15, 2017 at 12:24 PM

      Balaji-Thanks for your kind words 🙂

      Reply
  3. Chandran

    July 23, 2017 at 10:18 AM

    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

    Reply
    • Basavaraj Tonagatti

      July 23, 2017 at 10:48 AM

      Chandran-NRIs are not allowed to invest in domestic FDs.

      Reply
      • Chandran

        July 23, 2017 at 11:23 AM

        Can you suggest an alternate investment option for one year period.

        Reply
        • Basavaraj Tonagatti

          July 24, 2017 at 9:34 AM

          Chandran-Use Bank FDs or Liquid Funds.

          Reply
  4. Venkat

    July 12, 2017 at 5:03 PM

    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.

    Reply
    • Basavaraj Tonagatti

      July 13, 2017 at 9:20 AM

      Venkat-Sir, you can use SCSS of Post Office or Pradhan Mantri Vaya Vandana Yojana -LIC’s 8% Guaranteed Pension Plan.

      Reply
  5. Raghav

    July 7, 2017 at 11:12 AM

    Hi Basavaraj

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

    Reply
    • Basavaraj Tonagatti

      July 7, 2017 at 11:18 AM

      Raghav-Sadly they update by late.

      Reply
  6. THIYAGARAJAN

    July 5, 2017 at 3:44 PM

    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?

    Reply
    • Basavaraj Tonagatti

      July 5, 2017 at 6:03 PM

      Thiyagarajan-Refer my post “Best child saving and investment plan in India -10 Steps to identify“.

      Reply
  7. suresh N R

    July 4, 2017 at 2:03 AM

    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

    Reply
    • Basavaraj Tonagatti

      July 4, 2017 at 7:29 AM

      Suresh-In my view, it is better to change as long form. But check your feasibility to do the same.

      Reply
  8. Suresh KP

    July 1, 2017 at 9:37 AM

    Nivesh, There are errors in your post. I just mailed you, pls check and update

    Reply
    • Basavaraj Tonagatti

      July 1, 2017 at 9:48 AM

      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.

      Reply
  9. Raj

    June 30, 2017 at 6:47 PM

    Dear sir. The current rate for ppf is 7.90% and not 8%

    Reply
    • Basavaraj Tonagatti

      June 30, 2017 at 6:58 PM

      Raj-Yes, corrected and thanks for pointing an error.

      Reply
  10. RiteshM

    June 30, 2017 at 5:02 PM

    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.

    Reply
    • Basavaraj Tonagatti

      June 30, 2017 at 5:28 PM

      Ritesh-It is not Govt intention. But interest rate linked to Govt bond yield. Based on that such fluctuation arrive.

      Reply
  11. Akshat Shah

    June 30, 2017 at 1:30 PM

    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?

    Reply
    • Basavaraj Tonagatti

      June 30, 2017 at 1:51 PM

      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.

      Reply
      • Akshat Shah

        June 30, 2017 at 2:13 PM

        ok thanks basu sir. (y)

        Reply

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