The government has kept the interest rates applicable to small savings scheme unchanged for the quarter ending 31 March. Currently, the government offers nine types of small saving schemes, including Recurring Deposit (RD), Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY) and Senior Citizen Savings Scheme (SCSS). The Finance Ministry reviews the interest rates on these small savings schemes on a quarterly basis.
Let’s take a look at Post Office Savings Scheme and the interest rates they offer:
Post Office Savings Account – Post Office Savings Account can be opened by any individual with a minimum balance of ₹500. These account offers an interest of 4% annum on individual or joint accounts.
National Savings Recurring Deposit – Recurring Deposit (RD) account can be opened with a bank or a post office. Post Office RD can be opened for a tenure of 5 years. Psot Office RDs offer 7.2 % per annum (quarterly compounded).
National Savings Time Deposit – Post Office offers time deposit, also known as fixed deposit saving schemes to its customers. The interest on Post Office deposits was revised on 1 January 2020. For one-year time deposit, Post Office offers an interest rate of 6.9%. For time deposit for a tenure of 2 and 3 years, it offers an interest rate of 6.9%. For five-year time deposit account, Post Office offers an interest rate of 7.7%.
National Savings Monthly Income – For current January to March quarter, the interest on Post Office Monthly Income Scheme is fixed at 7.6%. This is a five-year deposit scheme, where interest is paid out monthly
Senior Citizen Savings Scheme – The five-year Senior Citizens Savings Scheme (SCSS) will continue to offer an interest rate of 8.6%.
Public Provident Fund – Public Provident Fund (PPF) will fetch 7.9% interest rate annually for the January to March quarter.
National Savings Certificate – National Savings Certificates (NSC) will continue to fetch 7.9% interest rate annually for the January to March quarter
Kisan Vikas Patra – Kisan Vikas Patra (KVP) will continue to offer interest rate of 7.6% (compounded annually) with maturity of 113 months.
Sukanya Samriddhi – The girl child savings scheme Sukanya Samriddhi Yojana will continue to fetch 8.4% (compounded annually).