Small Savings Schemes: No change in PPF interest rates for Oct-Dec 2020 quarter

Small savings schemes are considered to be very important for small savings. While these schemes are safe, they also provide good returns.

If you are also investing in a small savings scheme, there may be good news for you soon.

For the quarter of October to December 2020, interest rates on small savings schemes like PPF, NSC, Sukanya will be decided.

Interest rates on small savings schemes are likely to rise this time. An increase in the interest rate on these schemes will also increase the returns. As a result, those who invest in these schemes will benefit.

There was no change even in the previous quarter of July to September compared to the April to June 2020 quarter.It is now expected that interest rates might be raised in the coming quarters.

The interest rates of such small savings schemes are reviewed by the government every three months. Accordingly, it is decided to increase or decrease the interest rate.

If the interest rates of these schemes go up, the investors will get better benefits. If interest rates are cut, investors get lower returns.

The interest rate on PPF remains at 7.1 per cent per annum while for the Senior Citizen Savings Scheme, the interest rate is 7.4 per cent per annum. The 1-year time deposit, the rate of interest stands at 5.5 per cent.

The Sukanya Samridhi Yojana has been launched with a view to providing financial assistance to the girls.

Small savings schemes are considered beneficial for small savings.