PPF, Sukanya Yojana to NSC, small saving schemes interest rates cut by government; you will get this much now
Small Saving Schemes: The Narendra Modi Government has decided to cut the small savings schemes interest rates and make a level playing field for the banks.
Small Saving Schemes: The Narendra Modi Government has decided to cut the small savings schemes interest rates and make a level playing field for the banks that have slashed their bank deposit interest rates in the wake of lowering of the Repo Rate by the Reserve Bank of India (RBI). The decision was informed through the Office Memorandum issued by the Department of Economic Affairs (Budget Division) on 31st March 2020. The new rates will be applicable for the April to June quarter 2020 on all small savings schemes backed by the Central Government. These schemes include Senior Citizen Saving Scheme, Public RPvident Fund or PPF, National Savings Certificate or NSC, Sukanya Samriddhi Yojana, etc.
After the change in the small savings schemes, PPF account will fetch 7.1 per cent interest instead of the existing 7.9 per cent per annum. From now on, the monthly income account will give 6.6 per cent returns instead of 7.6 per cent. In the latest decision, the annual interest rate on Sukanya Samriddhi Yojana has been cut down to 7.6 per cent from 8.4 per cent.
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The Central Government has made some changes in the maturity of the Kisan Vikas Patra as well. From now on, Vikas Vikas Patra will mature in 124 months instead of 113 months. The Kisan Vikas Patra interest rate will be 6.9 per cent instead of 7.6 per cent.
See the complete list of Small Saving Schemes and new interest rates:
Speaking on the latest Small Savings Scheme interest rate cut Balwant Jain, a Mumbai-based tax and investment expert said, "These new small savings scheme interest rates will be applicable on old PPF accounts only. Rest of the Small Savings Scheme like Sukanya Samriddhi Yojana, Senior Citizen Saving Scheme, NSC will fetch the same interest rate which was given at the time of its opening. So, those who already have Sukanya Account, SCSS and NSC account, they need not bother about the change in small savings interest rates."
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