Small Savings Schemes - PPF, NSC, SSY, SCSS Latest Interest Rates


Small Savings Schemes Vs Bank FD:
 As the government hiked interest rates on 3-year time deposits and the Sukanya Samriddhi Scheme, the annual return rates of small savings schemes have increased. These fixed-income schemes are compared with bank FD (fixed deposits). Recently, SBI and Bank of Baroda have also raised their FD interest rates. Here are the latest interest rates on small savings schemes and bank fixed deposits.

The interest rate on PPF stands at 7.1 per cent, that on NSC at 7.7 per cent, and Senior Citizen Savings Scheme at 8.2 per cent.

Latest Interest Rates On Small Savings Schemes:

The interest rates for the January-March 2024 quarter have been fixed as follows:

Savings Deposit: 4 per cent

1-Year Post Office Time Deposits: 6.9 per cent

2-Year Post Office Time Deposits: 7.0 per cent

3-Year Post Office Time Deposits: 7.1 per cent

5-Year Post Office Time Deposits: 7.5 per cent

5-Year Recurring Deposits: 6.7 per cent

National Saving Certificates (NSC): 7.7 per cent

Kisan Vikas Patra: 7.5 per cent (will mature in 115 months)

Public Provident Fund: 7.1 per cent

Sukanya Samriddhi Account: 8.2 per cent

Senior Citizens Savings Scheme: 8.2 per cent

Monthly Income Account: 7.4 per cent.

Small Savings Schemes Vs Bank FD

Bank fixed deposits are time deposits wherein depositors keep their money for a fixed time, let’s say, 6 months, 1 year, 3 years or 5 years. The bank offers fixed annual interest rates on this fixed deposit, and the rates vary based on FD tenure and the depositor’s age.

Currently, HDFC Bank is offering up to 7.75 per cent interest rates on FD, depending upon deposit tenure and depositor’s age. ICICI Bank is offering FD rates up to 7.60 per cent annually and SBI is giving up to 7.50 per cent a year.

What Are Small Savings Schemes?

These are savings instruments managed by the government to encourage citizens to save regularly. Small savings schemes have three categories — savings deposits, social security schemes and monthly income plan.

Saving deposits include 1-3-year time deposits and 5-year recurring deposits. These also include saving certificates such as National Saving Certificates (NSC) and Kisan Vikas Patra (KVP). Social security schemes include Public Provident Fund (PPF), Sukanya Samriddhi Account and Senior Citizens Savings Scheme. The monthly income plan includes the Monthly Income Account.

The interest rates on small savings schemes, including public provident fund (PPF), national savings certificate (NSC) and Kisan Vikas Patra (KVP), are reviewed every quarter.

Interest rates on small savings schemes like PPF, NSC, etc, are now market-linked and moves in tandem with 10-year G-Sec yield.










































































































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Senior Citizen Savings Scheme (SCSS)-2004




(1) Senior Citizen Savings Scheme (SCSS)-2004 is Government of India Scheme.Presently   2808 branches are authorized to conduct SCSS-2004 business. The SCSS-2004 is meant for those who have touched 60 years and they wish to invest for the medium term. The scheme allows for an investment upto Rs. 15 lacs and the investor receives interest on a quarterly basis (i.e. 30/31 Mar, 29/30 Jun, 29/30 Sep and 30/31 Dec). This is one of the best avenues available for investment and receiving return for senior citizens.

(2) The salient points of the scheme – 
    (a) The account may be opened by an individual.
    (i) Who has attained age of 60 years or above on the date of opening of the account.
    (ii) Who has attained the age of 55 years or more but less than 60 years and has retired   under a Voluntary Retirement Scheme (VRS) or a special Voluntary Retirement scheme on the date of opening of the account within three months from the date of retirement.
    (iii) No age limit for the retired personnel of Defence Services provided they fulfill other specified conditions.

    (b) The account may be opened jointly with spouse.
    (c) Non resident Indians (NRIs) and Hindu Undivided Family (HUF) are not eligible to open an account.

(3) Amount of deposit –
   (a) Minimum of Rs. 1000/- and maximum of Rs. 15,00,000/-
   (b) The individual may open one or more accounts in the multiples of Rs. 1000/-, subject to a maximum of Rs. 15,00,000/-.

(4) Tenure of the deposit account – 5 years, which can be extended by 3 years.

(5) Rate of Interest – 8.30% per annum wef 01 Jul 2018. Interest can be automatically credited to savings bank account of the depositor. 


(6) Frequency of computing interest – Quarterly. Same as our Quarterly Income Certificate(QIC). Interest will be almost Rs. 2075/- for investment of Rs. 1 lac.

(7) Tax – Interest is fully taxable and will be deducted at source (TDS). Deposits qualify for deduction u/s 80-C of Income Tax Act on the deposits made in new accounts opened on or after 8th December 2007. You can submit 15G/15H as applicable.

(8) Premature Closure / Withdrawal facility – 
 (a) Premature closure is permitted after one year of opening the account but with penalty.
 (b) After one year but before 2 years on deduction of 1.5% of the deposit.
 (c) After 2 years but before date of maturity on deduction of 1% of the deposit.

(9) In case of death of the depositor before maturity, the account shall be closed and deposit refunded without any deduction along with interest.

(10) (a) Transferability – Not transferable.
        (b) Tradability – Not tradable.
        (c) Nomination facility – Available.
        (d) Transfer of account from one deposit office to another is permitted.
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