From the beginning of this month, investment in the Sukanya Samriddhi small savings scheme fetches a return of 7.6 per cent. That stands 80 basis points (0.80 percentage point) lower compared to the interest rate of 8.4 per cent the scheme yielded in the quarter ended March 31, according to an official statement. Sukanya Samriddhi is one of the nine government-run small savings schemes that are available at designated post office branches. The government reviews interest rates applicable to these schemes on a quarterly basis.
While investment in the Sukanya Samriddhi scheme now provides a return of 7.6 per cent, here are the interest rates applicable to other small savings schemes:
| Instrument | Interest Rate In January-March | Interest Rate In April-June | Compounding Frequency |
|---|---|---|---|
| Savings Deposit | 4% | 4% | Annually |
| One-Year Time Deposit | 6.9% | 5.5% | Quarterly |
| Two-Year Time Deposit | 6.9% | 5.5% | Quarterly |
| Three-Year Time Deposit | 6.9% | 5.5% | Quarterly |
| Five-Year Time Deposit | 7.7% | 6.7% | Quarterly |
| Five-Year Recurring Deposit | 7.2% | 5.8% | Quarterly |
| Senior Citizen Savings Scheme (SCSS) | 8.6% | 7.4% | Quarterly and paid |
| Monthly Income Account | 7.6% | 6.6% | Monthly and paid |
| National Savings Certificate | 7.9% | 6.8% | Annually |
| Public Provident Fund | 7.9% | 7.1% | Annually |
| Kisan Vikas Patra | 7.9% (matures in 113 months) | 6.9% (matures in 124 months) | Annually |
| (Source: dea.gov.in) | |||
For the first quarter of financial year 2020-21, the government has lowered interest rates on most small savings schemes such as the Senior Citizen Savings Scheme (SCSS) by 80-140 basis points (0.8-1.4 percentage point), according to an official statement.
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