Sukanya Samriddhi Yojana account continues to offer the highest interest rate among the small savings schemes.
The government today kept interest rates of small savings schemes, including that of Public Provident Fund or PPF, unchanged for the January to March quarter. Interest rates of small savings schemes are revised on a quarterly basis. The rates of interest on various small savings schemes for the fourth quarter of 2020-21, starting from January 1 and ending March 31, 2021, shall remain unchanged from those notified for the third quarter (October to December), the government said in a statement.
Besides PPF, the government offers many small savings schemes including Sukanya Samriddhi Yojana (SSY), National Savings Certificate (NSC), Post Office Time Deposits and Senior Citizen Savings Scheme (SCSS). The popular girl child savings scheme Sukanya Samriddhi Yojana account continues to offer the highest interest rate among the small savings schemes.
Here are the interest rate on various small savings schemes:
1) Public Provident Fund (PPF): The popular tax, long-term savings scheme, which matures in 15 years, fetches 7.1%. Investors can avail partial withdrawal after 5 years while they can also extend the account beyond 15 years. A minimum deposit of ₹500 per year is required to keep the account active.
2) Senior Citizen Savings Scheme (SCSS): Investors who are 60 years old can deposit up to ₹15 lakh in a Senior Citizen Savings Scheme to earn regular interest income on a quarterly basis. The senior citizens scheme offers interest rate of 7.4%.
3) Sukanya Samriddhi Yojana (SSY): It will continue to earn an interest rate of 7.6%. A maximum of 2 accounts is allowed for a household for two daughters individually.
4) Post Office Time Deposits: You can also open time deposits at a post office for tenures of 1, 2, 3 or 5 years of tenure. It is similar to fixed deposits offered by banks. Post office term deposits of 1-3 years give an interest rate of 5.5%. The five-year term deposit gives 6.7%.
5) 5-Year Post Office RD: This recurring deposit scheme offered by post offices will give new investors 5.8% interest rate.