The interest rate on Post Office Time Deposit Schemes has been revised by the government meanwhile other popular schemes such as PPF (Public Provident Fund), Sukanya Samriddhi account and Senior Citizen Savings schemes has been kept unchanged.

In a notification dated December 31, 2018, the Finance Ministry said that the interest rate on the 1-year Post Office time deposit, which is compounded quarterly, had been increased from 6.9% to 7% for the January-March quarter. However, the rate of interest on the 3-year deposit has been decreased from 7.2% to 7%.

The interest rates on other small saving schemes like 2-year and 5-year post office deposits remains unchanged at 7% and 7.8% respectively. The interest rate on the 5-year post office recurring deposit also stays constant at 7.3%. The interest rate on the PPF, which regained the title of highest annual post-tax return, & the 5-year National Savings Certificate stands at 8%.

The RBI, in 2018, had hiked interest rates twice whereas the government has also increased interest rate on various small savings schemes including PPF, KVP, SCSS, Sukanya Samriddhi Scheme etc by 40 basis points  for the October-December quarter.

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