We have compiled a list of Interest Rates on Public Provident Fund or PPF,Kissan Vikas Patra or KVP,Sukanya Samriddhi Scheme or SSY,National Saving Certificate or NSC etc. that will be helpful to you.
The interest rates on Small Savings Scheme have been further lowered by 0.1 percent for the first Quarter of Financial year 2017-18 .
Interest rate for the first quarter of Financial year 2017-18 i.e. Apr’17 to Jun’17
- PPF Interest rate reduced to 7.9%
- SSY or Sukanya Samriddhi Yojana interest rate falls to 8.40%
- Senior Citizen Savings Scheme rate revised to 8.40%
- Kissan Vikas Patra or KVP interest rate falls to 7.60%
- National Savings Certificate or NSC interest rate falls to 7.90%
- 5 year recurring deposit interest rates reduced to 7.20%
- Post Office Time Deposit rates also reduced by 0.1%
- Interest rates on Post Office Saving bank account and Post Office Monthly Income Scheme remain unchanged.
Small savings schemes are considered as a safe investment options since the past few decades. People who generally don’t want to take any risk and earn a fixed rate of interest accompanied with tax benefits opt to invest in them. The interest rates are determined by government on a quarterly basis.
However,the falling interest on small savings scheme is becoming a point of concern amongst potential investors who tend to get diverted towards other long term investment options.
|S.No.||Investment Option||Rate of Interest|
for Quarter 1 : Apr'17 to Jun'17
|1.||Public Provident Fund (PPF)||7.9%|
|2.||Senior Citizen Savings Scheme (SCSS)||8.4 %|
|3.||Kisan Vikas Patra (KVPs)||7.6 %|
|4.||Sukanya Samriddhi Yojana (SSY)||8.4 %|
|5.||Post Office Monthly Income Scheme (MIS)||7.7 %|
|6.||National Savings Certificate (NSC)||7.9%|
|7.||Savings Bank Account||4 %|
Comparison between Interest rates on PPF,SSY,KVP,NSC :
Interest for 2nd Quarter : Jul’16 to Sep’16 and 3rd Quarter : Oct’16 to Dec’16 and 4th Quarter : Jan’17 to March’17 :
|S.No.||Investment Option||Rate of Interest for Quarter 2 : Jul'16 to Sep'16||Rate of Interest for Quarter 3 : Oct'16 to Dec'16||Rate of Interest for Quarter 4 : Jan'17 to March 2017 ( Same as Q3 )|
|1.||Public Provident Fund (PPF)||8.1 %||8 %||8 %|
|2.||Senior Citizen Savings Scheme (SCSS)||8.6 %||8.5 %||8.5 %|
|3.||Kisan Vikas Patra (KVPs)||7.8 %||7.7 %||7.7 %|
|4.||Sukanya Samriddhi Yojana (SSY)||8.6 %||8.5 %||8.5 %|
|5.||Post Office Monthly Income Scheme (MIS)||7.8 %||7.7%||7.7%|
|6.||National Savings Certificate (NSC)||8.1 %||8 %||8 %|
|7.||Savings Bank Account||4 %||4 %||4 %|
For a detailed analysis on PPF and SSY you can refer our blog posts :
But, times are changing and investors are diversifying their funds by putting in other investment tools.
You should have a diversified portfolio comprising of :
- Short term investments and Long term investments.
- Fixed Interest bearing and slightly riskier ones to get maximum returns.
To explore better returns,you need to look beyond the traditional investment options.You can add any or a combination of the following to your investment portfolio to get good returns :
1. Secure options for capital protection in India like Fixed deposits,PPF,POSS etc.
2.Risky ones but good for growing your money-subject to market risks like investing in mutual funds.
Diversify your funds based on your risk appetite and period of investment and add a variety to your financial portfolio.