The government has reduced small savings schemes interest rates by 70 to 140 basis points (bps) for the April-June quarter of the financial year 2020-21.
Small saving schemes are still attractive as they provide capital safety, guaranteed returns and also double up as a tax-saving instrument. In case you are looking to invest in risk-free small saving schemes, here are the latest interest rates:
|Small Saving Scheme||Interest Rate From April 1, 2020||Interest Rates From Jan 1, 2020|
|Public Provident Fund (PPF)||7.1% per annum (compounded yearly)||7.9 %|
|Sukanya Samriddhi Account Scheme||7.6 Per Annum (compounded yearly)||8.4%|
|Savings Account||4.0% Per Annum (compounded yearly)||4.00%|
|Post Office Time Deposit 1-Year||5.5% (Quarterly)||6.90%|
|Post Office Time Deposit 2-Year||5.5% (Quarterly)||6.90%|
|Post Office Time Deposit 3-year||5.5% (Quarterly)||6.90%|
|Post Office Time Deposit 5-Year||6.7% (Quarterly)||7.70%|
|Kisan Vikas Patra (KVP )||6.9% (compounded yearly). Amount Invested doubles in 113 months (9 years & 5 months)||7.60%|
|National Savings Recurring Deposit Account||5.8 (Compounded quarterly)||7.20%|
|National Savings Certificate (NSC)||6.8 (Compounded yearly)||7.90%|
|Senior Citizen Savings Scheme (SCSS)||7.4% per annum, payable from the date of deposit of 31st March/30th Sept/31st December in the first instance & thereafter, interest shall be payable on 31st March, 30th June, 30th Sept and 31st December.||8.6 %|
|Post Office Monthly Income Scheme Account (MIS)||6.6 % per annum payable monthly||7.6 %|
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