InvestorQ : What are the changes done by the Modi Government in small saving schemes?
Dawn Cherian made post

What are the changes done by the Modi Government in small saving schemes?

Answer
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Roshni Hegde answered.
5 months ago


On 31st March 2020, India's government disclosed new interest rates for small savings schemes slashing them aggressively to lower rates. Citizens holding all small savings schemes including Senior Citizen Saving Scheme, Public Provident Fund or PPF, National Savings Certificate or NSC, Sukanya Samriddhi Yojana, etc. that is backed by the Central Government will be having new rates effective from April to June quarter 2020.

As per the circular by the Ministry of Finance, department of economic affairs, here are the revised rate for respective schemes.


InstrumentsNew Rate %Old rate %Compounding frequency
Savings Deposit44Annually
1 Year time deposit6.95.5Quarterly
2 Year time deposit6.95.5Quarterly
3 Year time deposit6.95.5Quarterly
5 Year time deposit7.76.7Quarterly
5 Year Recurring deposit7.25.8Quarterly
Senior Citizen Savings Scheme8.67.4Quarterly
Monthly Income Account7.66.6Monthly
National Savings Certificate7.96.8Annually
Public Provident Fund7.97.1Annually
Kisan Vikas Patra7.66.9Annually
Sukanya Samriddhi Account Scheme8.47.6Annually