Latest Interest rate chart on Small Saving Schemes – Now investment in small saving schemes like PPF, NSC, KVP, SCSS etc. will earn your less, as government has slashed the interest rates on these popular schemes. Interest rates on Public Provident Fund (PPF), Kisan Vikas Patra (KVP), National Saving Certificate (NSC), Senior Citizen Saving Scheme (SCSS), Sukanya Samriddhi Yojana (SSY) etc. have been cut by 70 to 140 basis points. One basis point is one-hundredth of a percentage point. As you know, interest rates on all small saving schemes have been linked to government bond yields and revised every quarter.
Those who are primarily dependent on income from these small saving schemes now need to re look at their investment portfolio. Here in this article, have a look at latest interest rate chart on small saving schemes which will be effective from April 1, 2020.
Latest Interest rate chart on Small Saving Schemes
| Scheme | Interest rate from Jan 1, 2020 | Interest rate from April 1, 2020 | Change (%) |
| Saving Deposit | 4 | 4 | 0 |
| 1 year Time Deposit | 6.9 | 5.5 | -1.4 |
| 2 year Time Deposit | 6.9 | 5.5 | -1.4 |
| 3 year Time Deposit | 6.9 | 5.5 | -1.4 |
| 5 year Time Deposit | 7.7 | 6.7 | -1 |
| 5 year RD | 7.2 | 5.8 | -1.4 |
| 5 year Senior Citizen Saving Scheme | 8.6 | 7.4 | -1.2 |
| 5 year Monthly Income Account | 7.6 | 6.6 | -1 |
| 5 year National Saving Certificate | 7.9 | 6.8 | -1.1 |
| Public Provident Fund | 7.9 | 7.1 | -0.8 |
| Kisan Vikas Patra | 7.6 | 6.9 | -0.7 |
| Sukanya Samriddhi Yojana | 8.4 | 7.6 | -0.8 |
However, it must be noted that Small saving schemes like Sukanya Samriddhi Yojana, Senior Citizen Saving Scheme or SCSS, National Saving Certificate or NSC attract interest rate available at the time of account opening. That interest rate remains available for these accounts till they mature. These new interest rates will be applicable only on those who are going to open new small saving scheme accounts. So, those investors who already have Sukanya samriddhi account, SCSS, NSC, no need to worry about decline in interest rates.
This interest rate cut is going to impact on the existing PPF accounts only. Other small saving schemes would not get affected by this rate cut as they will get the same interest rate, offered at account opening time.
