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Business News/ Money / Personal Finance/  Here are the latest interest rates of PPF, NSC, KVP, SSY and other small savings schemes from April 1 onwards
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Here are the latest interest rates of PPF, NSC, KVP, SSY and other small savings schemes from April 1 onwards

Within fixed-income instruments, small savings schemes such as PPF, SSY, NSC, and KVP are quite popular among investors thanks to the fixed and assured returns they offer.

A post office savings account is very similar to a bank savings account. It can be opened by depositing a minimum amount of ₹500 while the minimum withdrawal amount is ₹50. Premium
A post office savings account is very similar to a bank savings account. It can be opened by depositing a minimum amount of 500 while the minimum withdrawal amount is 50.

While investors with a high-risk appetite are savouring the high returns of 30 per cent given by Nifty50 in the fiscal year 2024, there are millions of conservative investors who remain content with their considerable exposure to fixed-income instruments.

Additionally, some aggressive investors allocate a portion of their portfolio to debt instruments to keep a portion of their wealth safe and secure.

Within fixed-income instruments, small savings schemes are the ones which are quite popular among the masses, and many investors opt for them for the fixed and assured returns they offer.

It is vital to note that the interest rates on small savings schemes for the June quarter (April- June) starting April 1, 2024, will remain unchanged. This was communicated through a Finance Ministry communication on March 8, 2024.

“The rates of interest on various Small Savings Schemes for the first quarter of FY 2024-25 starting from 1 April, 2024 and ending on 30th June, 2024 shall remain unchanged from those notified for the fourth quarter (1 January, 2024 to 31 March, 2024) of FY 2023-24," reads the letter.

However, the interest rates for two small savings schemes were recently raised, starting January 1, 2024, albeit marginally. The current rates of interest which will continue to be in force from April 1, 2024, are as follows:

Financial Instrument                               Rate of interest (%) Compounded frequency
Post office savings Account:                                                4Annually
1-year time deposit:                                                        6.9Quarterly
2-year time deposit:                                                                7Quarterly
3-year time deposit                                                         7.1Quarterly
5-year time deposit:                                                                 7.5Quarterly
5-year recurring deposit:                                                         6.7Quarterly
Senior Citizen Savings                                                         8.2Quarterly and Paid
Monthly income account                                                       7.4Monthly and paid
National Savings Certificate (NSC)                                 7.7Annually
Public Provident Fund (PPF)                                                7.1Annually
Kisas Vikas Patra                                                          7.5Annually
Sukanya Samriddhi Account Scheme                  8.2Annually

(Source: Department of Economic Affairs)

As we can see in the table above, Senior Citizen Savings and Sukanya Samriddhi Account offer the highest interest rate i.e., 8.2 per cent. National Savings Certificate offers 7.7 per cent and Kisan Vikas Patra (KVP) offers 7.5 per cent.

Additionally, the rate of compounding is also a significant factor to consider. The higher the compounding, the higher the return.

Here is a lowdown on a few of these schemes:

Post Office Savings Account: It is very similar to a bank savings account. It can be opened by depositing a minimum amount of 500 while the minimum withdrawal amount is 50.

There is no maximum limit. The interest rate offered is 4 per cent per annum on individual and joint accounts.

ALSO READ: Govt raises interest rates on two small savings schemes by 10-20 bps for Jan-March 2024

National Savings Certificate: Investors can open an account by investing a minimum of 1,000 and there is no maximum limit. The rate of interest is 7.7 percent which is compounded annually but payable at maturity.

PPF: Depositors can invest a minimum of 500 while the maximum amount is 1.5 lakh in a financial year. The rate of interest is 7.1 per cent per annum compounded yearly.

Kisan Vikas Patra: Investors can invest 1,000 and in multiples of 100 and there is no maximum limit. The rate of interest offered is 7.5 per cent compounded annually.

Sukanya Samriddhi Account Scheme: One can open this account by investing a minimum of 250 while the maximum is 1.50 lakh in a financial year. The rate of interest is 8.2 per cent per annum with effect from January 1, 2024.

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Published: 29 Mar 2024, 07:54 PM IST
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