From Today, Public Provident Fund, 7 Other Small Savings Schemes To Fetch Lower Returns

Currently, the Ministry of Finance offers nine types of small saving schemes, including Public Provident Fund (PPF), Kisan Vikas Patra and Sukanya Samriddhi.

From Today, Public Provident Fund, 7 Other Small Savings Schemes To Fetch Lower Returns

The finance ministry currently offers nine types of small savings schemes

The government on Tuesday cut interest rates on select small savings schemes by 80-140 basis points (0.8-1.4 percentage point). With effect from April 1, the interest rates on all but one small savings scheme stand reduced, according to a Department of Economic Affairs statement. Currently, the Ministry of Finance offers nine types of small saving schemes, including Public Provident Fund (PPF), Kisan Vikas Patra and Sukanya Samriddhi. Interest rates on these schemes are reviewed every quarter. (Also read: This Is The Minimum Investment You Need To Set Up A Post Office Account

Here are the interest rates applicable to small savings schemes such as PPF for the first quarter (April-June) of the current financial year (2020-21):

InstrumentInterest Rate In January-MarchInterest Rate In April-JuneCompounding Frequency
Savings Deposit4%4%Annually
One-Year Time Deposit6.9%5.5%Quarterly
Two-Year Time Deposit6.9%5.5%Quarterly
Three-Year Time Deposit6.9%5.5%Quarterly
Five-Year Time Deposit7.7%6.7%Quarterly
Five-Year Recurring Deposit7.2%5.8%Quarterly
Senior Citizen Savings Scheme (SCSS)8.6%7.4%Quarterly and paid
Monthly Income Account7.6%6.6%Monthly and paid
National Savings Certificate7.9%6.8%Annually
Public Provident Fund7.9%7.1%Annually
Kisan Vikas Patra7.9% (matures in 113 months)6.9% (matures in 124 months)Annually
Sukanya Samriddhi Account8.4%7.6%Annually
(Source: dea.gov.in)

Some of these post office saving schemes qualify for income tax benefits.