Sukanya Samriddhi Savings Scheme Pays 7.6% Return From This Month

Small Savings Scheme Interest Rates: The government has lowered interest rates on most small savings schemes by 80-140 basis points.

Sukanya Samriddhi Savings Scheme Pays 7.6% Return From This Month

A Sukanya Samriddhi account can be set up at designated post office branches

From the beginning of this month, investment in the Sukanya Samriddhi small savings scheme fetches a return of 7.6 per cent. That stands 80 basis points (0.80 percentage point) lower compared to the interest rate of 8.4 per cent the scheme yielded in the quarter ended March 31, according to an official statement. Sukanya Samriddhi is one of the nine government-run small savings schemes that are available at designated post office branches. The government reviews interest rates applicable to these schemes on a quarterly basis.

While investment in the Sukanya Samriddhi scheme now provides a return of 7.6 per cent, here are the interest rates applicable to other small savings schemes:

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
(Source: dea.gov.in)

For the first quarter of financial year 2020-21, the government has lowered interest rates on most small savings schemes such as the Senior Citizen Savings Scheme (SCSS) by 80-140 basis points (0.8-1.4 percentage point), according to an official statement.