According to the latest update from the government, the interest rates of post office small savings account, Public Provident Fund (PPF), Sukanya Samruddhi Account, National Savings Certificates, and Senior Citizens Savings Scheme remain unchanged. The announcement remains valid for the quarter from October to December.
The interest rate on small savings scheme gets updated once every quarter. Now, the interest rates of PPF and NSC remain at 7.9% p.a. for the upcoming quarter. Sukanya Samriddhi Account and Senior Citizens Savings Scheme continue to offer the highest interest rates at 8.4% p.a. and 8.6% p.a. among other small savings schemes. You must know that the interest earned on the girl child savings scheme investment will be compounded annually.
Also Read: Investments under section 80C towards PPF and EPF
Interest rates of the small savings schemes received quarterly updates since 1 April 2016. According to analysts, a conservative investor trusts investing in small savings schemes such as Sukanya Samriddhi Account and Senior Citizens Savings Scheme. The next preferred small savings scheme is Kisan Vikas Patra (KVP) that continues to offer an interest rate of 7.6% p.a., compounded annually. Upon a period of 113 months, the investment gets doubled.
Further, the five-year Post Office Monthly Income Scheme (MIS) that pays out monthly interest will also continue at 7.6% p.a. The interest rate of Post Office term deposits of 1-3 years remains at 6.9% and that of a five-year period at 7.7% p.a. In addition, Post Office recurring deposits offer interest at 7.2% p.a.
For any clarifications/feedback on the topic, please contact the writer at apoorva.n@cleartax.in
