In response to the current coronavirus outbreak, the Center has left interest rates for small savings plans, such as NSC, SCSS, KVP, PPF, etc. unchanged for the second quarter 2021-2022. Small savings interest rates for the quarter ending September 30, 2021 are the same as they were maintained for the quarter ending April to June 2021. Under a low rate regime, no rate adjustment Interest on small mail-in savings will certainly be of benefit to risk-averse investors, especially the elderly.
Although it is well known that until maturity the interest rate of the National Savings Certificate, Kisan Vikas Patra, Post Office Term Deposits and Savings Plan for the Elderly (SCSS ) remains constant. While the interest rates of the Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) are subject to adjustment made by the government on a quarterly basis. Small savings plans will maintain the same flow to provide higher rates to investors than other secured debt instrument options such as bank term deposits (FDs). For example, the PPF would earn 7.10 percent, the NSC would earn 6.8%, and the post office’s monthly income plan account would earn 6.6 percent.
The interest rate for the senior savings plan is 7.4 percent per annum. The interest rate on a one-year term deposit is 5.5 percent, while the rate on a five-year term deposit is 6.7 percent each year. While the Sukanya Samriddhi Yojana account for girls would continue to provide 7.6 percent. The interest rate on savings accounts will remain at 4% per annum.
Interest rate for small savings plans
|Small Savings Plans||ROI in% for the quarter ending September 30, 2021||Compound frequency|
|Post office savings account||4||Annual|
|Term deposit (1 year)||5.5||Quarterly|
|Term deposit (2 years)||5.5||Quarterly|
|Term deposit (3 years)||5.5||Quarterly|
|Term deposit (5 years)||6.7||Quarterly|
|Recurring deposit at the post office (5 years)||5.8||Quarterly|
|Seniors Savings Plan (5 years)||7.4||Quarterly|
|Post monthly income plan||6.6||Monthly|
|5-year National Savings Certificate||6.8||Annual|
|Public provident fund||7.1||Annual|
|Kisan Vikas Patra (124 months)||6.9||Annual|
|Sukanya Samriddhi Yojana||7.6||Annual|
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Article first published: Thursday, July 1, 2021, 9:03 am [IST]