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Investment In Small Savings Schemes To Fetch These Returns In July-September Quarter

India Post, which operates a network of more than 1.5 lakh post offices across the country, offers 9 options under its small savings scheme portfolio.

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Investment In Small Savings Schemes To Fetch These Returns In July-September Quarter

Interest rates on the nine small savings schemes are currently revised every quarter.


The government on Friday reduced interest rates of small savings schemes by 0.1 per cent for the second quarter of the financial year 2019-20, starting from July 1, 2019 and ending on September 30, 2019. However, interest rate on savings account has been retained at 4 per cent annually, the Finance Ministry said while notifying the rates for the second quarter of financial year 2019-20. Investment or deposit in any of the remaining small savings schemes will fetch a return to the tune of 7.2-8.6 per cent for the September 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). 

Here's a comparison of the interest rate and investment limits applicable to these small savings schemes:

Small savings schemeInterest rateMinimum amount required for opening accountMaximum investment allowed
Savings account4%Rs 20
Five-year recurring deposit account7.20%Rs 10 per monthNo limit
One-year time deposit (fixed deposit) account6.9%Rs 200No limit
Two-year time deposit (fixed deposit) account6.9%Rs 200No limit
Three-year time deposit (fixed deposit) account6.9%Rs 200No limit
Five-year time deposit (fixed deposit) account7.70%Rs 200
Monthly income scheme7.60%Rs 1,500Rs 4.5 lakh
Senior citizen savings scheme (SCSS)8.60%Rs 1,000Rs 15 lakh
15-year public provident fund7.9%Rs 500Rs 1.5 lakh per financial year
National savings certificate (NSC)7.9%Rs 100No limit
Kisan Vikas Patra (KVP)7.60%Rs 1,000No limit
Sukanya Samriddhi8.40%Rs 1,000Rs 1.5 lakh per financial year

Interest rates on the nine small savings schemes (including four types of time deposit or fixed deposit) are currently revised every quarter. 

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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