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News You Can Use: Small Savings Schemes Interest Rates Slashed, Know The New Rates

Team BankBazaar
·1-min read
Photo By Fabian Blank On Unsplash
Photo By Fabian Blank On Unsplash

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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