How interest rates vary on Small savings schemes, SCSS; know here
The revision in interest rates does not affect old investments except for PPF and SSY.
'Disclaimer: This story is for informational purposes only and should not be taken as investment advice.'
Union Ministry of Finance has notified that interest rates for small savings schemes would be revised every quarter of the financial year.
Accordingly, the rates for January-March, 2018 have been notified in the last week of December 2017, and the same were cut for most of small savings schemes barring Senior Citizens Savings Scheme (SCSS), said PersonalFinanceplan report.
According to the report, the revision in interest rates does not affect old investments except for PPF and SSY.
It may be noted that changes in interest rates after opening the deposit does not affect rate of interest in the Senior Citizens Savings Scheme, but fresh investment will earn the interest as notified for the quarter.
Therefore, existing SCSS and time deposits will continue to earn the same rate of interest as contracted at time of opening such deposits.
However, it would be affected if when your deposits are renewed or have to be rolled over.
For PPF and SSY, the notified interest rate is what you will earn on your entire PPF (or SSY) balance during the current quarter, therefore, the impact is immediate, PersonalFinanceplan added.