Small savings schemes: Look at post-tax return before deciding to invest

Investors in small savings schemes breathed a sigh of relief when the government announced on October 1 that interest rates on these instruments would not be revised for the fourth quarter of the calendar year. With the economy witnessing a slowdown, and the stock markets also turning volatile, many investors are looking for alternative avenues to park their savings. Small savings schemes, with their sovereign guarantee, have emerged as a viable alternative.

Business Standard had earlier reported that investments in small savings schemes have surged 37 per cent between April and July 2019, as investors sought refuge in these guaranteed-return