PPF, NSC, MIS, SSA, SCSS.. - SMALL SAVING SCHEMES RATES REVISED from April 1, 2017

PPF, NSC, MIS, SSA, SCSS..  - SMALL SAVING SCHEMES RATES REVISED from April 1, 2017

The central Government has announced revised rates of interest on various small savings schemes ( PPF, MIS, SSA, SCSS.. ) for the first quarter of the financial year 2017-18.

To bring such rates somewhat closer to market rates, the Government has decided to effect a reduction of 0.1% (10 basis points) in interest rates across the board in all the schemes except the Post Office Savings Account, which has been left untouched.

Various small savings schemes will continue to be very attractive compared to bank deposits of similar maturities and tenor even after this marginal reduction in interest rates by 0.1%.

Instruments		Rate of interest w.e.f. 01.04.2017  to 30.6.2011	Compounding  frequency*
Saving Deposit		4.0	Annually
1 Year Time Deposit		6.9	Quarterly
2 Years Time Deposit		7.0	Quarterly
3 Years Time Deposit		7.2	Quarterly
5 Years Time Deposit		7.7	Quarterly
5 Years Recurring Deposit		7.2	Quarterly
5 Years Senior Citizens Savings Scheme		8.4	Quarterly and paid
5 Years Monthly Income Account Scheme		7.6	Monthly and paid
5 Years National Savings Certificate		7.9	Annually
Public Provident Fund Scheme		7.9	Annually
Kisan Vikas Patra		7.6 (will mature in 112 months)	Annually
Sukanya Samriddhi Account Scheme		8.4	Annually

Apart from offering higher interest rates compared to bank deposits, some of the small savings schemes also enjoy income tax benefits. Further, small savings schemes like Senior Citizens Savings Scheme (SCSS), Sukanya Samriddhi Account (SSA), PPF, 5 year National Savings Certificate (NSC), 5 year Monthly Income Scheme (MIS) and 5 year Time Deposits (TD) enjoy additional interest rate spreads.

This additional interest rate spread is 1% in the case of Senior Citizen Savings Scheme, 0.75% in Sukanya Samriddhi Account and 0.25% spread in PPF, 5 year NSC, 5 year MIS and 5 year TD.

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