The Government of India has cut
the interest rates on Small Savings Schemes by 70-140 bps from April 2020 to June
2020. This means the investors will earn less on their savings in these schemes
from 1st April to 30th June 2020.
The post office investments
like Public Provident Fund (PPF), National Savings Certificate (NSC), Senior
Citizen Savings Scheme (SCSS), Kisan Vikas Patra (KVS), Sukanya Samridhi
Scheme, RD Account, PO Term Deposit, etc. are very popular investment options
among Indians.
What are the latest interest rates for small savings schemes for April to June 2020? Which is the highest interest rate on post office savings schemes? In this post, let us take a look at the interest rates for Small Savings Schemes for April to June 2020.
Interest Rates Schedule for Post Office Small Savings Schemes
Earlier the rate of interest
on post office savings schemes used to be announced yearly once. Since 1st
April 2016, the Government of India notifies the rate of interest on small
savings schemes every quarter.
Following is the quarterly interest rate schedule for post office saving 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 first quarter of FY 2020-2021 starting from April 1, 2020, and
ending on June 30, 2020.
Interest Rates for Small Savings Schemes for the period April to June 2020
This time, the government
has slashed the rate of interest for post office saving schemes by 70-140 bps for
the first quarter of the financial year 2020-2021. This means that the millions
of investors will earn less by investing in these instruments for the first quarter
of the financial year 2020-2021.
Rate of Interest for Small Savings Schemes for April to June 2020
1. The Senior Citizens Saving Scheme (SCSS) will fetch 7.4% per annum as against 8.6% earlier.
2. The 5 years National Savings Certificate will earn an interest rate of 6.8% per annum as against 7.9%
earlier.
3. The PPF (Public Provident Fund) scheme will also fetch an interest rate of 7.1% per annum after
an 80 bps cut in the interest rate.
4. The girl child savings
scheme Sukanya Samriddhi Account will fetch the highest interest rate of 7.6% per
annum.
5. KVP (Kisan Vikas Patra)
will fetch an interest rate of 6.9% and mature in 124 months.
6. The five-year Recurring Deposit Account will fetch an interest rate of 5.8% per annum.
7. The 5 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 remain unchanged at 4% p. a.
Interest
Rates for Small Savings Schemes for April to June
2020
The rate of Interest from 01/04/2020 to 30/06/2020
|
The rate of Interest from 01/01/2020 to 31/03/2020
|
Frequency of Compounding
|
|
Savings Account
|
4%
|
4%
|
Annually
|
Time Deposit - 1 Year
|
5.5%
|
6.9%
|
Quarterly
|
Time Deposit - 2 Years
|
5.5%
|
6.9%
|
Quarterly
|
Time Deposit - 3 Years
|
5.5%
|
6.9%
|
Quarterly
|
Time Deposit - 5 Years
|
6.7%
|
7.7%
|
Quarterly
|
5 Year Recurring Deposit (RD)
|
5.8%
|
7.2%
|
Quarterly
|
Sukanya Samriddhi Account Scheme
|
7.6%
|
8.4%
|
Annually
|
Kisan Vikas Patra (KVP)
|
6.9%
|
7.6%
|
Annually
|
PPF Scheme
|
7.1%
|
7.9%
|
Annually
|
5 Year National Savings Certificate
|
6.8%
|
7.9%
|
Annually
|
5 Year Post Office Monthly Income Account
|
6.6%
|
7.6%
|
Monthly and paid
|
5 Year Senior Citizens Savings Scheme
|
7.4%
|
8.6%
|
Quarterly and paid
|
Click here to read the office memorandum from the Department
of Economic Affairs, Ministry of Finance about the “Interest rates for small savings schemes”.
You can view the interest
rates for the previous eight quarters:
This time, the government
has cut the rate of interest for small savings schemes by 70-140 bps for the first
quarter of the financial year 2020-2021. Therefore, now these post office
saving schemes will offer less to the investors on their savings.
Also, read: Top 12 Best Mutual Funds to invest in 2020
Also, read: What is SIP (Systematic Investment Plan)
Also, read: Benefits of SIP | Advantages of SIP
Also, read: How to start a SIP
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