Friday, 3 July 2020

Interest Rates for Small Savings Schemes for July to September 2020

The Government of India has not changed the interest rates on Small Savings Schemes from July 2020 to September 2020. This means the interest rates for post office savings schemes from 1st July to 30th September 2020 will remain constant as they were from 1st April to 30th June 2020.




Post Office Small Savings Schemes

The post office investment schemes like Public Provident Fund (PPF), National Savings Certificate (NSC), Senior Citizen Savings Scheme (SCSS), Kisan Vikas Patra (KVS), SSA, RD Account, Post Office Term Deposit, etc. are very popular investment schemes among conservative investors.

What are the latest interest rates for small savings schemes for July to September 2020? Which is the highest interest rate on Small Savings Schemes? In this post, let us take a look at the interest rates for post office savings schemes for July to September 2020.




Interest Rates Schedule for Post Office Small Savings Schemes

Earlier the interest rate on post office savings schemes used to be announced yearly once. Since 1st April 2016, the Government of India announces the interest rate for post office saving schemes every quarter.




Below is the quarterly interest rate schedule for small savings schemes.
S. No.
Rates of Interest would be effective for the quarter
The date on which it will be notified
1
April to June (First Quarter)
15th March
2
July to September (Second Quarter)
15th June
3
October to December (Third Quarter)
15th September
4
January to March (Fourth Quarter)
15th December

The Government of India announced the rate of interest for post office saving schemes for the second quarter of FY 2020-2021 starting from July 1, 2020, and ending on September 30, 2020.

Interest Rates for Small Savings Schemes for the period April to June 2020

This time, the government has not changed the rate of interest for post office saving schemes for the second quarter of the financial year 2020-2021. This means that the rates of interest of post office schemes like PPF, and NSC will remain constant for the second quarter of the financial year 2020-2021.




Rate of Interest for Small Savings Schemes for July to September 2020

1. The girl child savings scheme Sukanya Samriddhi Account will continuously fetch the highest interest rate of 7.6% per annum.
2. The 5 years National Savings Certificate will offer an interest rate of 6.8% p.a.
3. The PPF (Public Provident Fund) scheme will also fetch an interest rate of 7.1% p.a.
4. The Senior Citizens Saving Scheme (SCSS) will offer an interest rate of 7.4% p.a.
5. Kisan Vikas Patra will fetch an interest rate of 6.9% and mature in 124 months.
6. The 5 years Recurring Deposit Account will fetch an interest rate of 5.8% per annum.
7. The five years Monthly Income Account will offer an interest rate of 6.6% per annum.
8. Post Office Time Deposit of 1 to 5 years interest rates will be as:
The interest rate for I year Time Deposit is 5.5%
The interest rate for 2 year Time Deposit is also 5.5%
The interest rate for 3 year Time Deposit is also kept at 5.5%
The interest rate for 5 years Time Deposit is 6.7%
9. The interest rate for the Post Office Savings Account will also remain constant at 4% per annum.




Interest Rates for Small Savings Schemes for July to September 2020

Scheme Name
The rate of Interest from 01/07/2020 to 30/09/2020
The rate of Interest from 01/04/2020 to 30/06/2020
Frequency of Compounding
Savings Account
4%
4%
Annually
Time Deposit - 1 Year
5.5%
5.5%
Quarterly
Time Deposit - 2 Years
5.5%
5.5%
Quarterly
Time Deposit - 3 Years
5.5%
5.5%
Quarterly
Time Deposit - 5 Years
6.7%
6.7%
Quarterly
5 Year Recurring Deposit (RD)
5.8%
5.8%
Quarterly
Sukanya Samriddhi Account Scheme
7.6%
7.6%
Annually
Kisan Vikas Patra (KVP)
6.9%
6.9%
Annually
PPF Scheme
7.1%
7.1%
Annually
5 Year National Savings Certificate
6.8%
6.8%
Annually
5 Year Post Office Monthly Income Account
6.6%
6.6%
Monthly and paid
5 Year Senior Citizens Savings Scheme
7.4%
7.4%
Quarterly and paid

You can view the interest rates for the previous eight quarters:




Conclusion

This time, the government has not changed the rate of interest for small savings schemes for the second quarter of the financial year 2020-2021. The post office saving schemes are backed with a government guarantee, therefore you can consider investing in these schemes.






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