Small Saving Schemes Interest Rates July 2019
In this article we will see the updated Interest Rates on Small Saving Schemes – EPF, PPF, SCSS, SSY, NSC, KVP for 2nd quarter (July-Sept) of FY2019-20. These interest rates are as on last updated by the government. If you are planning to invest in any of these saving schemes, you should know about their interest rates. For all the small saving schemes interest rates are aligned with Government security rates of similar maturity, with a little spread.
Different Small Saving Schemes
Below you can find the interest rates for various small saving 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 currently offers an interest rate of 7.90% per annum for 2nd quarter of FY2019-20 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 2nd quarter of FY2019-20.
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 currently offers 8.60% interest rate per annum for 2nd quarter of FY2019-20 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.
- NSCs (5 year VIII Issue) offers 7.90% interest rate for 2nd quarter of FY2019-20 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 offer 7.60% as interest rate for 2nd quarter of FY2019-20 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 currently offers an attractive interest rate of 8.40% per annum for 2nd quarter of FY2019-20 compounded annually which is calculated on a yearly basis.