- Date : 03/04/2019
- Read: 2 mins
The government keeps interest rates unchanged for small saving schemes such as National Savings Certificate (NSC) and Public Provident Fund (PPF) for the April-June quarter.
The Ministry of Finance has maintained the same yields on small saving schemes in the first quarter of Financial Year (FY) 2019-20, starting April 1 to June 30 as they were in the last quarter of FY 2018-19 from January to March.
The notification came through the Ministry’s official Twitter handle - @FinMinIndia. It said:
“Rates of Interest on various Small Savings Schemes for the First Quarter of the Financial Year 2019-20 starting from 1st April, 2019 & ending on 30th June, 2019 will remain unchanged & will continue to be same as notified for the Fourth Quarter of the Financial Year 2018-19.”
The interest rate on various small savings schemes is recalibrated before every quarter based on the performance of government bonds from the previous quarter.
How different small investments will fare for April to June 2019?
The interest income on Public Provident Fund and National Savings Certificate was raised by 40 basis points (bps) for the October to December quarter from 7.6% to 8% and the same continues to remain in effect for the current quarter.
The yield on the one year Post Office time deposits was increased by 10 bps from 6.9% to 7%.
The yield on two and three-year Post Office time deposits remained unchanged at 7%.
The five-year recurring deposit, five-year Post Office time deposit and five-year Monthly Income Scheme will continue to earn 7.3%, 7.8% and 7.7% respectively.
Interest on the Sunkanya Samriddhi Yojana for the girl child was raised from 8.1% to 8.5% for the third quarter of FY 2018-19. The same interest rates apply for the current quarter.
Investments in Senior Citizen Savings Scheme will earn 8.7% while the yields on the Kisan Vikas Patra have gone up from 7.3% to 7.7%.
These savings schemes are extremely popular with the salaried citizens on account of the tax benefit they provide in addition to the superior returns as compared to standard bank deposits.