The government has kept interest rates of post office small savings schemes, including that of Public Provident Fund (PPF), Sukanya Samriddhi Account, NSC and Senior Citizen Savings Scheme unchanged for the October to December quarter. The interest rate on small savings schemes including PPF are revised on a quarterly basis. So PPF and National Savings Certificates or NSC will continue to fetch 7.9% interest rate annually for the October to December quarter.
Sukanya Samriddhi Account and Senior Citizen Savings Scheme continue to offer higher rates than other small savings schemes. The girl child savings scheme Sukanya Samriddhi Account will continue to fetch 8.4% (compounded annually. The five-year Senior Citizens Savings Scheme will also continue to offer a interest rate of 8.6%.
"On the basis of the decision of the government, interest rates for small savings schemes are notified on quarterly basis since 1 April 2016. Accordingly, the rates of interest of various small savings schemes for the third quarter of the financial year 2019-20 starting from 1 October 2019 and ending on 31 December 2019 shall remain unchanged from those notified for the second quarter (1st July 2019 to 30 September 2019) of financial year 2019-20," the finance ministry said in a statement.
Analysts say that for a conservative investor PPF and other small savings schemes like Sukanya Samriddhi Account and Senior Citizen Savings Scheme still offer good returns.
Another small savings scheme Kisan Vikas Patra (KVP) will continue to offer interest rate of 7.6% (compounded annually) with maturity of 113 months. Or, in other others, investments will double in 113 months.
The five-year Post Office Monthly Income Scheme (MIS), where interest is paid out monthly, will continue to offer 7.6%.
Post office Term deposits
Post office term deposits of 1-3 years continue to offer interest rate of 6.9% while the five-year at 7.7%. Post office 5-year recurring deposits will fetch 7.2%.