National Savings Certificate

The government on Friday raised the interest rates on Sukanya Samriddhi scheme by 20 basis points and three-year term deposit scheme by 10 basis points for the January-March quarter, while retaining the rates for all other small savings schemes. According to a finance ministry circular, the deposit under Sukanya Samriddhi scheme would attract an interest rate of 8.2 per cent from the existing 8 per cent, while the 3-year term deposit would become 7.1 per cent from the current 7 per cent. However, the interest rates for popular PPF and savings deposits have been retained at 7.1 per cent and 4 per cent, respectively. The rates were the same during the December quarter. The interest rate on the Kisan Vikas Patra is 7.5 per cent and the investments will mature in 115 months. The interest rate on the National Savings Certificate (NSC) remained unchanged at 7.7 per cent for January 1 to March 31, 2024, period. There is no increase in interest rate for the Monthly Income Scheme, and thi

Returns of some schemes remain unchanged throughout the tenure, but can fluctuate in the case of others

Rate on National Savings Certificate steeply raised by 70 bps, PPF kept unchanged

The government on Friday hiked the interest rates on small deposits -- including post office term deposits, NSC and senior citizen savings scheme -- by up to 1.1 percentage points from January 1, in line with firming interest rates in the economy. However, the interest rates on Public Provident Fund (PPF) and the girl child savings scheme Sukanya Samriddhi has not been changed. National Savings Certificate (NSC) will yield a 7 per cent interest rate from January 1, compared to 6.8 per cent at present. Similarly, the senior citizen savings scheme will give 8 per cent interest against 7.6 per cent currently. Interest rates on Post office term deposit schemes of duration 1 to 5 years will rise by up to 1.1 percentage points. The monthly income scheme too will yield 7.1 per cent interest, up from 6.7 per cent.

Take into account tax benefit and payout frequency as well when selecting a scheme

What are Small Savings Schemes - types, returns and interest rates

Amid uncertainty in the equity-linked savings instruments, government's small savings schemes offer safe and assured returns. What are these schemes? Let us understand in this explainer

Costlier loans from NSSF, at 7.4% interest rate, will occupy more than 10% share in govt's outstanding public debt soon, all to give the small saver a higher interest rate than the market

Budget proposes that interest on the PF contributions (employee contribution) above Rs 2.5 lakh per annum be taxable with from April 1, 2021

The government kept the interest rates on small savings schemes, including PPF and NSC, unchanged for the January-March quarter

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This is because the government went for one of the steepest cuts of up to 1.4 percentage points in these interest rates to facilitate banks to lower their rates.

Interest rates for small savings schemes are notified on a quarterly basis

Locking-in now would help investors earn 8 per cent for the next five years. In a falling interest rate regime, it would be a great advantage