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Small Savings Schemes Interest Rates Jan 2020

4 min read
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.
Small Savings Schemes

Small Savings Schemes

Interest Rates of Small Savings Schemes January-March 2020

Introduction

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.

Financial Planning Knowledge Bank by Invest Yadnya
Financial Planning Knowledge Bank by Invest Yadnya

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

Small Savings Schemes
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.
 Public Provident Fund (PPF) Interest Rates Q4 FY20
Public Provident Fund (PPF) Interest Rates Q4 FY20

Employee Provident Fund (EPF)

  • 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).
 Employee Provident Fund (EPF) Interest Rates Q4 FY20
Employee Provident Fund (EPF) Interest Rates Q4 FY20

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.
Senior Citizen Savings Scheme (SCSS) Interest Rates Q4 FY20
Senior Citizen Savings Scheme (SCSS) Interest Rates Q4 FY20

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.
National Saving Certificate (NSC) Interest Rates Q4 FY20
National Saving Certificate (NSC) Interest Rates Q4 FY20

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.

Sukanya Samriddhi Yojana (SSY)

  • 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.
Sukanya Samriddhi Yojana Interest Rates for Q4 FY20
Sukanya Samriddhi Yojana Interest Rates for Q4 FY20

Conclusion

  • 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.

3 thoughts on “Small Savings Schemes Interest Rates Jan 2020

  1. I start sukanya smiridhi yojana on my daughter name in 2015,
    I want to known as of today if I deposit any money I will get the current interest rate or the one which I got while enroll time.

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