PPF and Sukanya Samriddhi are most attractive in small-savings basket

Senior Citizens' Savings Scheme remains a must-have for those who need regular cash flows after retirement

On September 29, the government hiked the interest rate on several small saving schemes by 10-30 basis points (bps). There was an increase in the interest rates on two-year time deposit (new rate 5.7 per cent), three-year deposit (5.8 per cent), Senior Citizens Savings Scheme (SCSS, 7.6 per cent), monthly income account (6.7 per cent), and Kisan Vikas Patra (7 per cent). Rates on Public Provident fund (PPF, 7.1 per cent), Sukanya Samriddhi Yojana (SSY, 7.6 per cent) and National Savings Certificate (NSC, 6.8 per cent) remained unchanged.

“In a rising interest-rate scenario, when returns on all fixed-income products are