Interest rates for Small Savings – October 2020
With the increasing investment in Mutual Funds, Stocks and Bonds, the value of Small Savings in India has not diminished even today. Postal and Bank Small Savings Schemes are a boon for the Middle and Poor class families.
The interest rates on Small Savings schemes are subject to change in every quarter. Generally, the rates for Senior Citizen Savings Scheme and Sukanya Samriddhi account are higher than other Schemes. At the beginning of the current fiscal 2020-21, the interest rates on Small Savings plans were drastically reduced.
The Government had on September 30, 2020 released its interest rates for the Small Savings Scheme for the Period October – December 2020 quarter. It is also said that the interest rate for the July-September quarter will remain unchanged.
The Interest rate for the Savings account under Small Savings Scheme will be 4 Percent. For the One year, Two years and Three years Term Deposit, the rate will remain at 5.5 Percent.
The 5 year term deposit is said to be 6.7 Percent and the five year recurring deposit will be 5.80 Percent. The Senior Citizen Savings plan attracts with 7.4 Percent and the Girl Child Plan – Sukanya Samriddhi comes with 7.60 Percent.
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