The government reviews the interest rates applicable to these savings schemes on a quarterly basis
Public Provident Fund (PPF) provides an annual return of 7.1 per cent for the third quarter of current financial year. The PPF scheme, which comes with a maturity period of 15 years, is one among nine small savings instruments currently offered by the government. Investment in these small savings schemes currently fetches returns to the tune of 4-7.6 per cent per annum. these schemes are available in designated branches of commercial banks as well as the post office.
Here's a comparison of the interest rates and minimum limits applicable to these nine small savings schemes in the third quarter of 2019-20 (October-December):
| Small Savings Scheme | Interest Rate | Minimum Amount Required For Opening Account |
|---|---|---|
| Post Office Savings Account | 4% | Rs 500 |
| 5-Year Post Office Recurring Deposit (RD) Account | 5.8% | Rs 100 per month |
| Post Office Time Deposit (TD) Account - One Year | 5.5% | Rs 1,000 |
| Post Office Time Deposit Account (TD) - Two Years | 5.5% | Rs 1,000 |
| Post Office Time Deposit Account (TD) - Three Years | 5.5% | Rs 1,000 |
| Post Office Time Deposit Account (TD) - Five Years | 6.7% | Rs 1,000 |
| Post Office Monthly Income Scheme Account (MIS) | 6.6% | Rs 1,000 |
| Senior Citizen Savings Scheme (SCSS) | 7.4% | Rs 1,000 |
| 15-Year Public Provident Fund Account (PPF) | 7.1% | Rs 500 |
| National Savings Certificates (NSC) | 6.8% | Rs 1,000 |
| Kisan Vikas Patra (KVP) | 6.9% | Rs 1,000 |
| Sukanya Samriddhi Account | 7.6% | Rs 250 |
| (Source: indiapost.gov.in) | ||
Of these schemes, the time deposit or term deposit scheme comes in four maturity options, ranging from one to five years.
The government reviews the interest rates applicable to these savings schemes on a quarterly basis.
