Senior Citizen Savings Scheme Interest Rate: The return has been reduced to of 7.4% from 8.6%From the beginning of this month, investment in the Senior Citizen Savings Scheme (SCSS) - one of the nine government-run small savingsschemes - fetches a lower return of 7.4 per cent, compared to 8.6 per cent in the quarter ended March 31.
The SCSS scheme, which pays interest at the end of each of the four quarters, allows investment to the tune of Rs 1,000 to Rs 15 lakh for a maturity period of five years, according to India Post's website -indiapost.gov.in.
For the first quarter of financial year 2020-21, the government has lowered interest rates on most small savings schemes such as the SCSS by 80-140 basis points (0.8-1.4 percentage point), according to an official statement.InstrumentInterest Rate In January-MarchInterest Rate In April-JuneCompounding FrequencySavings Deposit4%4%AnnuallyOne-Year Time Deposit6.9%5.5%QuarterlyTwo-Year Time Deposit6.9%5.5%QuarterlyThree-Year Time Deposit6.9%5.5%QuarterlyFive-Year Time Deposit7.7%6.7%QuarterlyFive-Year Recurring Deposit7.2%5.8%QuarterlyMonthly Income Account7.6%6.6%Monthly and paidNational Savings Certificate7.9%6.8%AnnuallyPublic Provident Fund7.9%7.1%AnnuallyKisan Vikas Patra7.9% (matures in 113 months)6.9% (matures in 124 months)AnnuallySukanya Samriddhi Account8.4%7.6%Annually(Source: dea.gov.in)Currently, the Ministry of Finance offers nine types ofsmall saving schemes, including the 15-Year Public Provident Fund (PPF) and Sukanya Samriddhi scheme, and revises the interest rates applicable to them on a quarterly basis.