19 Jan 2019

All You Need To Know About Small Savings Scheme Interest Rates

All You Need To Know About Small Savings Scheme Interest Rates

The government has kept interest rates of most small savings schemes unchanged for the quarter ending March 31, 2019. Out of the nine small savings schemes, only interest rates applicable time-deposit have been revised in select maturities. Investment in time deposits (TD) - also known as term deposits or fixed deposits (FD) - of one-year, two-year and three-year maturity periods will fetch interest at the rate of 7 per cent in the January-March period, according to a statement by the Ministry of Finance. 

Here are the interest rates applicable to different small savings schemes - from PPF to savings deposit - with effect from January 1, 2019:

Small savings schemeRate of interest with respect to October 1, 2018 to December 31, 2018Rate of interest with respect to January 1, 2019 to March 31, 2019Compounding frequency
Savings Deposit4.0%4.0%Annually
1-Year Time Deposit6.9%7.0%Quarterly
2-Year Time Deposit7.0%Quarterly
3-Year Time Deposit7.2%Quarterly
5-Year Time Deposit7.8%7.8%Quarterly
5-Year Recurring Deposit7.3%7.3%Quarterly
5-Year Senior Citizen Savings Scheme8.7%8.7%Quarterly and paid
5-Year Monthly Income Account7.7%7.7%Monthly and paid
5-Year National Savings Certificate8.0%8.0%Annually
Public Provident Fund Scheme8.0%8.0%Annually
Kisan Vikas Patra7.7% (will mature in 112 months)7.7% (will mature in 112 months)Annually
Sukanya Samriddhi Account Scheme8.5%8.5%Annually
(Source: Ministry of Finance)
Interest rates applicable to all other small savings schemes, such as Public Provident Fund (PPF), Savings Deposit, Kisan Vikas Patra (KVP) and Sukanya Samriddhi, were kept unchanged, according to the official statement.
In the October-December period, the government paid interest rates of 6.9 per cent, 7 per cent and 7.2 per cent on one-year, two-year and three-year time deposits respectively.
Source - NDTV


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