Latest Interest Rates Post Office Small Saving Schemes (April 2019 to June 2019)

The National Savings Schemes (NSS) are arguably some of the most popular saving schemes in India. Over 9 Lakh Crores have been invested in NSS so far. These are regulated by the Ministry of Finance. Small Saving Scheme offer sovereign guarantee on Principle & Interest component.  

These schemes also act as instruments of financial inclusion as post offices are present across India even in geographically difficult terrain and provide better options (than saving a/c, FD etc) to people staying in these areas

Listed are some schemes which fall under NSS

• PPF (Public Provident Fund)
• Monthly Income Scheme (Monthly Income Account)
• Senior Citizen Savings Scheme
• Kisan Vikas Patra (KVP)
• National Savings Certificate(NSC)
• Sukanya Samriddhi Scheme

Interest rates of these small saving schemes are linked to the yield of government bonds of comparable maturity (with a small mark-up or spread) and are revised on Quarterly Basis.

The saving schemes like Sukanya Samriddhi, Senior Citizen Savings Scheme and Monthly Income Scheme enjoy ‘spreads’ over the G-sec rate of comparable maturity viz., of 75 basis points (0.75%), 100 bps (1%) and 25 bps respectively. BPS stand for basis point and 100 bps means 1%.

5 year National Saving Certificates (NSC) and Public Provident Fund (PPF) currently have 25 bps spread over G-Sec of comparable maturity

Premature closure of PPF accounts is permitted with a penalty of 1% reduction in interest payable on the whole deposit and only for the accounts having completed five years from the date of opening.

Latest Post Office Small Saving Schemes Interest rates FY 2019-20 (April to June 2019)

The rates of interest on various small savings schemes for the first quarter of financial year 2019-20 are as below :

• Rate of Interest on PPF (Public Provident Fund) would be 8%.
• On post office MIS (Monthly Income Scheme) interest is 7.7%.
• The interest rate on Senior Citizen Savings Scheme (SCSS) is maintained at 8.7%.
• The rate of interest on 5 year National Savings Certificate (NSC) is 8%.
• New interest rate on Kisan Vikas Patra (KVP) would be 7.7%.
• Sukanya Samriddhi Scheme (SSA ) is eligible for 8.5% rate.
• The rate of interest on a 5 year Post Office RD (Recurring Deposit) would be 7.8%.

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pic courtesy : deccan chronicle