The Reserve Bank of India (RBI) has recently cut key policy rates to mitigate Covid-19 impact.
- RBI has slashed the Repo Rate by 75 basis points to 4.4%.
- It has cut the Reverse Reop Rate by 90 basis points to 4% and
- CRR has been reduced by 100 baiss points to 3%.
In view of the above, most of the banks and financial institutions have already been reducing the interest rates on their deposits schemes.
SBI, slashed its FD rates by up to 50 bps. After the cut, SBI’s one-year FD will now earn 5.2 per cent (senior citizens will earn 6.2 per cent).
As expected, the central Govt has announced a steep cut in the interest rates on small savings schemes for the first quarter (April to June) of FY 2020-21. Interest rates on various small savings schemes have been cut by between 70 basis points and 140 basis points (100 basis points = 1 per cent).
The National Savings Schemes (NSSs) are one of the very popular saving schemes in India. These are regulated by the Ministry of Finance. They offer complete security of investment combined with attractive returns.
These schemes also act as instruments of financial inclusion especially in the geographically inaccessible areas due to their implementation primarily through the Post Offices, which have reach far and wide.
It is estimated that nearly $137 billion or over Rs. 9 lakh crore are tied up in small savings schemes.
Some of the very popular schemes which fall under NSS are as below;
- PPF (Public Provident Fund)
- Sukanya Samriddhi Scheme
- Monthly Income Scheme (Monthly Income Account)
- Senior Citizen Savings Scheme
- KVP (Kisan Vikas Patra)
- NSC (National Savings Certificate)
- Time Deposits &
- Recurring Deposits
Latest Post Office Small Saving Schemes Interest rates Apr – Jun 2020
The latest rates of interest applicable on various small savings schemes for the quarter from April to June 2020 effective from 1.4.2020 would be as below;
Latest Interest Rate on Sukanya Samriddhi Scheme, PPF, MIS, NSC | Q1 FY 2020-21
The latest rates of interest applicable on various small savings schemes for the first quarter from April to June 2020 effective from 1-4-2020 would be as below;
- The latest interest rate on Sukanya Samriddhi Scheme (SSA ) is 7.6%.
- The new rate of Interest on PPF (Public Provident Fund) would be 7.1%.
- The interest rate on Senior Citizen Savings Scheme (SCSS) has been reduced to 7.4%.
- New interest rate on Kisan Vikas Patra (KVP) would be 6.9%.
- The rate of interest on 5 year National Savings Certificate (NSC) is 6.8%.
- New interest rate on post office MIS (Monthly Income Scheme) is 6.6%.
- The rate of interest on a 5 year Post Office RD (Recurring Deposit) would be 5.8%.
Kindly note that interest rates of Small Savings Schemes are now reviewed and reset (if any) on a quarterly basis.
The revised rates (if any) are applicable for all the new investments MADE during the respective period.
For the existing investments under all the schemes (EXCEPT PPF & SUKANYA SAMRIDDHI SCHEME), the contracted interest rate remains unchanged until maturity.
Continue reading :
- Top 22 Popular Investment options in India – Features & Snapshot
- Lump sum Investment options for Retirees/Senior Citizens | Where to invest my Retiral benefits to get Regular Income?
- RBI’s statistical data on Indian Household Investments & Savings (2019) | How & Where do we save & invest?
(Post first published on : 01-April-2020)
Keeping the current state of economy and covid impact and fuel prices crash, do you foresee majority of govt institutions will open tax free bonds large scale by Q2 or Q3 of 2020 ?