The Finance Ministry has announced the revised interest rates on various Post Office Small Savings Schemes. These interest rates are applicable for Financial Year 2015-2016 and are effective from 1st April, 2015.
The savings schemes that are available at Post Office branches are as below;
- Sukanya Samriddhi Deposit Scheme
- Public Provident Fund
- Senior Citizen Savings Scheme (SCSS)
- Monthly Income Scheme (MIS)
- Term / Time Deposits
- Recurring Deposits
- National Savings Certificates (NSC – 5 year / 10 year)
- New Kisan Vikas Patra (KVP)
- Savings Account
Post Office Small Savings Schemes : Interest rates for Financial Year (FY) 2015-2016
- The interest rate on Sukanya Samriddhi Account has been increased to 9.2% from 9.1%. This account can be opened at authorized banks or at post office branches.
- The interest rate on a 5 year Senior Citizen Savings Scheme (SCSS) has been revised to 9.3%, an increase of .10%.
- The rate of interest on Public Provident Fund (PPF) for Financial Year 2015-2016 has not been changed. Interest rate on PPF for FY 2015-16 would be 8.7%.
- The interest rates on Public Provident Fund (PPF), Term Deposits, Recurring Deposits, MIS & KVP have been kept unchanged for Financial Year 2015-2016.
In the last one year or so, the yields on Government Bonds have been decreasing. This normally leads to a decrease in interest rates of Small Savings Schemes / Bank Deposits. However, the Government is going against the tide and has chosen to keep the interest rates unchanged on various savings schemes. The increase of .10% interest rate on Sukanya Samriddhi A/c (SSA) is seen as a political move and it may encourage more and more investors to join the scheme.
Before you decide to invest in SSA Scheme (or any Small Savings Scheme), kindly use the calculator which is available in one of my posts – “Calculate how much you need to invest for your Kid’s education or marriage..”. Download the calculator and you may find out the required savings amount. If the required savings amount is high, and the target year (kids education / marriage goals) is far off, do not hesitate to take investment risk. It is prudent to invest a major portion of your savings in equity oriented products (like mutual funds) than to invest in the above savings schemes.
Latest News on EPF : (16-Feb-2016)
You may read other Related Articles :
- Sukanya Samriddhi Account (SSA) – Features, Benefits & Review
- Sukanya Samriddhi Yojana – Income Tax Benefits – Budget 2015/2016
- Sukanya Samriddhi Account / Khatha – List of Authorized Banks
- Comparison of Sukanya Samriddhi Deposit Scheme with Public Provident Fund (SSA Vs PPF)
- New Interest Rates on PPF & SSA 2016-17