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From Today, Public Provident Fund, 7 Other Small Savings Schemes To Fetch Lower Returns
01 Apr 2020, 09:06 AM IST 
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):
| Instrument | Interest Rate In January-March | Interest Rate In April-June | Compounding Frequency |
|---|---|---|---|
| Savings Deposit | 4% | 4% | Annually |
| One-Year Time Deposit | 6.9% | 5.5% | Quarterly |
| Two-Year Time Deposit | 6.9% | 5.5% | Quarterly |
| Three-Year Time Deposit | 6.9% | 5.5% | Quarterly |
| Five-Year Time Deposit | 7.7% | 6.7% | Quarterly |
| Five-Year Recurring Deposit | 7.2% | 5.8% | Quarterly |
| Senior Citizen Savings Scheme (SCSS) | 8.6% | 7.4% | Quarterly and paid |
| Monthly Income Account | 7.6% | 6.6% | Monthly and paid |
| National Savings Certificate | 7.9% | 6.8% | Annually |
| Public Provident Fund | 7.9% | 7.1% | Annually |
| Kisan Vikas Patra | 7.9% (matures in 113 months) | 6.9% (matures in 124 months) | Annually |
| Sukanya Samriddhi Account | 8.4% | 7.6% | Annually |
| (Source: dea.gov.in) | |||
Some of these post office saving schemes qualify for income tax benefits.