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Public Provident Fund, seven other small savings schemes to fetch lower returns from today – Eight savings schemes including PPF will get less than today…

Eight savings schemes including PPF will get less interest than today…

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new Delhi:

The central government has cut interest rates on select savings schemes by 80 to 140 basis points (0.8 ms 1.4 percentage points) on Tuesday. According to the statement of the Department of Economic Affairs, due to these rates effective from April 1, 2020, interest will be given less under all schemes except for one scheme. At present, nine different small savings schemes are being operated by the Finance Ministry, including Public Provident Fund (PPF), Kisan Vikas Patra (KVP), Sukanya Samriddhi Account (SSA) and Senior Citizen Savings Scheme (SCSS) . The interest paid under these schemes is reviewed every quarter.

These are the rates of interest on individual small savings schemes during the first quarter (April 1 to June 30, 2020) of the current financial year (2020-21).

Small saving scheme Rate of interest Minimum amount required to open an account
Post office savings account 4% 500 rupees
Five-Year Post Office Recurring Deposit (RD) Account 5.80% Rs 100 per month
Post Office Fixed Deposit (TD) Account – One Year 5.50% Rs 1,000
Post Office Fixed Deposit (TD) Account – Two-Year 5.50% Rs 1,000
Post Office Fixed Deposit (TD) Account – Three-Year 5.50% Rs 1,000
Post Office Fixed Deposit (TD) Account – Five-Year 6.70% Rs 1,000
Post Office Monthly Income Scheme (MIS) 6.60% Rs 1,000
Senior Citizen Savings Scheme (SCSS) 7.40% Rs 1,000
15-Year Public Provident Fund (PPF) 7.10% 500 rupees
National Savings Letter (NSC) 6.80% Rs 1,000
Kisan Vikas Patra (KVP) 6.90% (maturity at 124 months) Rs 1,000
Sukanya Samriddhi Account (SSA) 7.60% 250 rupees
Source: dea.gov.in
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