Interest rates for Small Savings Schemes – October 2019
The Small Savings Scheme interest rate for Banks and Postal have been announced. While Interest rates for Small savings Schemes are low, still the interest rates for Provident Fund, Sukanya Samriddhi and Senior Citizen Savings were good in the face of Low Inflation.
There is no change in the interest rate for the Period between October and December 2019. However in the current economic situation, the interest rate for small savings scheme seems Reasonable. The said rates for the July – September 2019 is to be followed in the current Quarter (October to December 2019) also.
Generally, when the interest rate decreases, the Bond yield will increase. Similarly, if the interest rate increases, then the bond yield will decrease. In the Current Scenario, the Bank Repo rate seems low and Rate cut is also happening. One can use the Debt Funds through Mutual Funds in this Situation.
The interest rate for small savings scheme has been slightly favorable, as the bank FD rates are fallen. For a 5 Years Term Deposit scheme, the interest rate is 7.70 Percent and for Senior Citizen Savings Scheme is 8.60 Percent.
The Interest rate for National Savings Certificate (NSC) is said to be 7.90 Percent. For the Public Provident Fund (PPF), the rate is 7.90 Percent. PPF is also a good investment choice and those who do not have a PF account can take advantage by this PPF. Public Provident Fund is also comes with EEE (Exempted) benefit.
The Sukanya Samriddhi Scheme for a girl child comes with an interest rate of 8.40 Percent and Kisan Vikas Patra (KVP) stands with 7.60 Percent interest rate. Those who are looking for a short term investment through Small Savings scheme, like One year Term Deposit – it comes with 6.90 Percent.
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