Interest Rates On PPF, Other Small Savings Schemes Unchanged In December Quarter

This means existing interest rates will apply on small savings schemes - such as the Public Provident Fund (PPF) - in the quarter ending December 31.

Interest Rates On PPF, Other Small Savings Schemes Unchanged In December Quarter

Small Savings Scheme Interest Rates: Currently, the returns are revised on a quarterly basis

The government on Wednesday announced its decision to retain interest rates applicable to small savings schemes at existing levels for the coming quarter. There is no change in the interest rates applicable to small saving schemes, Economic Affairs Secretary Tarun Bajaj said on Wednesday. This means investments in the nine small savings schemes - including the Public Provident Fund (PPF) - will continue to fetch returns at existing rates in the quarter ending December 31. Currently, small savings schemes pay annual returns to the tune of 4-7.6 per cent. 

Here are the interest rates applicable to small savings schemes in the third quarter of the current financial year (October-December 2020):

Small Savings SchemeInterest RateMinimum Amount Required For Opening Account
Post Office Savings Account4%Rs 500
5-Year Post Office Recurring Deposit (RD) Account5.8%Rs 100 per month
Post Office Time Deposit (TD) Account - One Year5.5%Rs 1,000
Post Office Time Deposit Account (TD) - Two Years5.5%Rs 1,000
Post Office Time Deposit Account (TD) - Three Years5.5%Rs 1,000
Post Office Time Deposit Account (TD) - Five Years6.7%Rs 1,000
Post Office Monthly Income Scheme Account (MIS)6.6%Rs 1,000
Senior Citizen Savings Scheme (SCSS)7.4%Rs 1,000
15-Year Public Provident Fund Account (PPF)7.1%Rs 500
National Savings Certificates (NSC)6.8%Rs 1,000
Kisan Vikas Patra (KVP)6.9%Rs 1,000
Sukanya Samriddhi Account7.6%Rs 250
(Source: indiapost.gov.in)

Currently, the government offers nine types of small saving schemes, including the 15-year PPF scheme, the Senior Citizen Savings Scheme (SCSS), the Kisan Vikas Patra certificates and the Monthly Income Scheme (MIS). The finance ministry reviews the interest rates on the nine small savings schemes on a quarterly basis. 

(Also read: This Is The Minimum Investment You Need To Set Up A Post Office Account

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