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PO Small Savings Schemes Investors (Again) Happy

The Department of Economic Affairs, Ministry of Finance has announced the latest interest rates on the Post Office Small Savings Schemes for the period Jan to Mar 2020.

Contrary to a rate reduction that many were expecting, the Govt. has decided that such interest rates shall remain unchanged this quarter too, just like the previous quarter.

This has naturally made the investors in Small Savings Schemes very happy. They have already been suffering as the interest rates on Bank FDs have come down in recent months.

By now you would surely be aware that, as per the present policy, interest rates on Small Savings Schemes are reset periodically on a quarterly basis.

The decision to maintain the same interest rates as the last two quarters was notified vide Office Memorandum F.No.1/4/2019-NS dated Dec 31, 2019 on the subject 'Revision of interest rates for Small Savings Schemes'.

Accordingly, the interest rates on various Post Office Small Savings Schemes for the fourth quarter of the Financial Year 2019-20 — i.e. Jan 1st to Mar 31st, 2020 — are detailed below:


small-savings-schemes-interest-rates

Public Provident Fund (PPF) : 7.9% p.a. [compounded annually]

5-year National Saving Certificate (NSC) : 7.9% p.a. [compounded annually]

Monthly Income Scheme : 7.6% p.a. [monthly compounding and paid out]

Senior Citizens Savings Scheme : 8.6% p.a. [quarterly compounding and paid out]

Time Deposits
1-year Deposit : 6.9% p.a.
2-year Deposit : 6.9% p.a.
3-year Deposit : 6.9% p.a.
5-year Deposit : 7.7% p.a.
(All on quarterly compounding basis)

5-year Recurring Deposit : 7.2% p.a. [compounded quarterly]

Kisan Vikas Patra : 7.6% p.a. [compounded annually] 
(The scheme will double your money in 9 years and 5 months)

Sukanya Samriddhi Scheme : 8.4% p.a. [compounded annually]

Savings Deposit : 4% p.a. [compounded annually]


Alternatives to Small Savings Schemes
- Why Debt Mutual Funds AND Which Debt Mutual Funds
- 7.75% RBI Savings (Taxable) Bonds


Note:
1. The revised interest rates apply only to the "new accounts" opened during the respective period (except PPF and Sukanya Samriddhi Scheme, where the new rate is applied on the outstanding account balance).

2. For the existing accounts under all other schemes, the contracted interest rate remains unchanged until maturity.


For Information: Interest rates for the previous three quarters
Post Office Small Savings Schemes Investors Happy 
Tiny Cut In Post Office Small Savings Schemes Interest
Latest Post Office Small Savings Schemes Interest Rates


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