Interest Rates of Small Savings Schemes January-March 2020
In this article we will see the updated Interest Rates on Small Savings Schemes – EPF, PPF, SCSS, SSY, NSC, KVP for Q4 FY2019-20 (January-March). All these small savings schemes will continue to fetch same interest rate between January-March quarter of FY 2019-20 as they were earning during the October-December quarter. Department of Economic Affairs has made an announcement regarding it on December 31, 2019.
If you are planning to invest in any of these savings schemes, you should know about their interest rates. For all the small savings schemes interest rates are aligned with Government security rates of similar maturity, with a little spread.
Different Small Savings Schemes
Below you can find the interest rates for various small savings schemes:-
Public Provident Fund (PPF)
- PPF is a long-term investment for a period of 15 years. The government will review the PPF rates quarterly.
- PPF scheme will continue to offer an interest rate of 7.90% per annum for 4th quarter of FY2019-20 (January to March) same as last quarter and compounded annually.
- Employee Provident Fund is a long term investment tool. Interest rate on EPF contributions is revised every year.
- The interest rate currently on investments in EPF is 8.65% Per Annum for 4th quarter of FY2019-20 (January to March).
Senior Citizen Savings Scheme (SCSS)
- The government will review the SCSS rates quarterly. But, once a subscriber has enrolled, the rates will remain unchanged for the tenure. Deposit has a maturity period of 5 years.
- This scheme will continue to offer 8.60% interest rate per annum for 4th quarter of FY2019-20 (January to March) compounded annually.
National Savings Certificate (NSC)
- From FY2016–17 onwards, the interest rate on the NSC will be revised every quarter as per the prevailing government-bond rates. However, once you have invested in the NSC, the rate applicable that time will remain the same throughout the tenure of the investment. Certificate comes with the maturity period of 5 years.
- NSC (5 year VIII Issue) is going to offer 7.90% interest rate for 4th quarter of FY2019-20 (January to March) which is compounded annually but is payable at maturity.
- The 10 year option of the NSC has been discontinued.
Kisan Vikas Patra (KVP)
- The KVP rates will be notified every quarter as per the prevailing government security rates. Scheme aims at doubling the investment in 115 months (9 years 5 months) with the applicable interest rate.
- However, once you have made an investment, the rate will remain unchanged for you throughout the tenure.
- KVPs will offer a steady 7.60% as interest rate for 4th quarter of FY2019-20 (January to March) same as last quarter which is compounded annually.
- The interest rate for the SSY is to be 75 basis points over the ten year government bond yield. The rates will be revised every quarter and the new rates will be applicable to all the subscribers.
- Scheme will continue to offer the same interest rate of 8.40% per annum for 4th quarter of FY2019-20 (January to March) compounded annually which is calculated on a yearly basis.
- Small savings schemes interest rates have been kept unchanged for the forth quarter of the current financial year FY2019-20 despite a general downtrend in interest rates in the economy and belying expectations of a cut.
- This decision is good news for small depositors and senior citizens as banks have been reducing their fixed deposits (FDs) interest rate since the start of the financial year as the Reserve Bank of India (RBI) has been reducing its key policy rates.
- Department of Economic Affairs, Ministry of Finance has made an announcement regarding it on December 31, 2019.