Interest rates for Small Savings Schemes from April 2019
The Ministry of Finance announcing its interest rates for Small Savings Scheme once in three months. If there is any change in the interest rate, they are applicable only for a period of three months. Recently, the Ministry of Finance said in its statement that there is no change in the rates for the period of April – June 2019, and the same interest rates in the last quarter will continue now.
The Current interest rate changes were announced for the Period April to June, is for the first quarter of the Financial Year 2019-20 (Q1FY20). Last time, there is a slight change in the interest rates for the small savings Term Deposit Scheme. For the Quarter of January to March 2019, there is 7 percent rate for the one year term deposit. As it was seen earlier with 6.9 percent in the October – December 2018 period.
For the 3 years Term Deposit scheme, the interest rate was seen as 7.20 percent in the Q3FY19 and then it was reduced in the Fourth quarter of FY19 to 7 percent. The highest rate for the Small savings scheme was given to the 5 Years Senior Citizen Savings scheme (Sr.CSS) were 8.70 percent.
Currently, the Small savings interest rate are at low and it has been reduced gradually in the last few years. The Public Provident Fund(PPF) rates were at 8 percent for the First quarter of FY19 (April-March). The interest rate history for the PPF were seen as the lowest of 7.6 percent in the First half year of 2018.
The CPI Inflation rate were also seen below in its expectation. Based on the Inflation rate in India, the interest rate are also changing for the Small Savings Scheme. Sukanya Samriddhi scheme will get 8.50 % and Kisan Vikas Patra at 7.70 percent and 5 Years National Savings Certificate(NSC) will fetch about 8 percent interest rate for the Period between April – June 2019.
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