Interest rates on the nine small savings schemes are currently revised every quarter.The government on Friday reduced interest rates of small savings schemes by 0.1 per cent for the second quarter of the financial year 2019-20, starting from July 1, 2019 and ending on September 30, 2019.However, interest rate on savings accounthas been retained at 4 per cent annually,the Finance Ministry said while notifying the rates for the second quarter of financial year 2019-20.Investment or deposit in any of the remaining small savings schemes will fetch a return to the tune of 7.2-8.6 per cent for the September quarter.India Post, which operates a network of more than 1.5 lakh post offices across the country, offers nine options under its small savings scheme portfolio.
These include fixed deposit or time deposit (available in four options of maturities), recurring deposit, Public Provident Fund (PPF), Senior Citizen Savings Scheme, National Savings Certificate and Kisan Vikas Patra (KVP).Small savings schemeInterest rateMinimum amount required for opening accountMaximum investment allowedSavings account4%Rs 20Five-year recurring deposit account7.20%Rs 10 per monthNo limitOne-year time deposit (fixed deposit) account6.9%Rs 200No limitTwo-year time deposit (fixed deposit) account6.9%Rs 200No limitThree-year time deposit (fixed deposit) account6.9%Rs 200No limitFive-year time deposit (fixed deposit) account7.70%Rs 200Monthly income scheme7.60%Rs 1,500Rs 4.5 lakhSenior citizen savings scheme (SCSS)8.60%Rs 1,000Rs 15 lakh15-year public provident fund7.9%Rs 500Rs 1.5 lakh per financial yearNational savings certificate (NSC)7.9%Rs 100No limitKisan Vikas Patra (KVP)7.60%Rs 1,000No limitSukanya Samriddhi8.40%Rs 1,000Rs 1.5 lakh per financial yearInterest rates on the nine small savings schemes (including four types of time deposit or fixed deposit) are currently revised every quarter.Out of these small savings schemes, investment in the five-year term deposit (fixed deposit), Senior Citizen Savings Scheme (SCSS), 15 year Public Provident Fund and National Savings Certificates (NSC) qualifies for income tax benefit under Section 80C of the Income Tax Act.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com.
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