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Investment In Small Savings Schemes Fetches These Returns In March Quarter

For the quarter ending March 31, the government pays interest rates in the range of 4-8.7 per cent on small savings schemes (including 15-year PPF).

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Investment In Small Savings Schemes Fetches These Returns In March Quarter

Fixed deposit, recurring deposit and 15-year PPF are some of the small savings schemes


Investment or deposit in any of the small savings schemes fetches a return to the tune of 4-8.7 per cent for the current quarter. India Post, which operates a network of more than 1.5 lakh post offices across the country, offers nine options under its small savings scheme portfolio. These include fixed deposit or time deposit (available in four options of maturities), recurring deposit, Public Provident Fund (PPF), Senior Citizen Savings Scheme, National Savings Certificate and Kisan Vikas Patra (KVP). Of these, the highest interest rate of 8.7 per cent per annum is applicable to the Senior Citizen Savings Scheme, according to India Post's website - indiapost.gov.in.

Here's a comparison of the interest rate and investment limits applicable to these small savings schemes (including Public Provident Fund):

Small savings schemeInterest rateMinimum amount required for opening accountMaximum investment allowed
Savings account4%Rs 20
Five-year recurring deposit account7.30%Rs 10 per monthNo limit
One-year time deposit (fixed deposit) account7%Rs 200No limit
Two-year time deposit (fixed deposit) account7%Rs 200No limit
Three-year time deposit (fixed deposit) account7%Rs 200No limit
Five-year time deposit (fixed deposit) account7.80%Rs 200
Monthly income scheme7.30%Rs 1,500Rs 4.5 lakh
Senior citizen savings scheme (SCSS)8.70%Rs 1,000Rs 15 lakh
15-year public provident fund8%Rs 500Rs 1.5 lakh per financial year
National savings certificate (NSC)8%Rs 100No limit
Kisan Vikas Patra (KVP)7.70%Rs 1,000No limit
Sukanya Samriddhi8.50%Rs 1,000Rs 1.5 lakh per financial year
(Source: indiapost.gov.in)

Interest rates on the nine small savings schemes (including four types of time deposit or fixed deposit) are currently revised every quarter. The current rates are applicable for the quarter ending on March 31, 2019. 

Income tax benefits

Out of these small savings schemes, investment in the five-year term deposit (fixed deposit), Senior Citizen Savings Scheme (SCSS), 15 year Public Provident Fund and National Savings Certificates (NSC) qualifies for income tax benefit under Section 80C of the Income Tax Act.



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