Invest in PPF, NSC and other small savings schemes, know how much interest will be received this quarter

New Delhi, Business Desk. There is good news for those investing in the government’s small savings schemes. The government has not made any change in the interest rate in the July-September quarter on other savings schemes like PPF, NSC and Sukanya Samriddhi. This means that the investment in these schemes will get the same return in the July-September quarter as in the April-June quarter. In the midst of the Corona crisis, it is considered a very relief decision for investors. The postal department issued a circular on July 1 to announce the interest on various small savings schemes.  

According to the circular, interest on Public Provident Fund (PPF) will continue to accrue at the rate of 7.10 per cent in the second quarter of FY 2020-21. The Senior Citizen Saving Scheme (SCSS) will continue to receive interest at the rate of 7.40. At the same time, the rate of interest for the post office time deposit is between 5.5-6.7 percent. These interest rates will be effective from July 1, 2020 to September 30, 2020.  

Let us know how much interest is being paid on which scheme: 

Earlier, for the April-June, 2020 quarter, the government had cut the interest rate associated with small savings schemes from 0.70 per cent to 1.40 per cent. 

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Tax and investment expert Balwant Jain said that given the current circumstances related to Kovid-19, it can be said that the decision to keep the interest rates of small savings schemes unchanged is quite a relief for investors.  

Jain said, “RBI has reduced the repo rate in the last two bi-monthly review meetings. It affects all types of rates. The government has given relief to small investors by keeping the interest rate unchanged on schemes like PPF. Because of this, there will not be any reduction in the interest rate on the bank’s FD, which was expected by everyone. ” 

It is noteworthy that the government reviews the interest received on time deposit, recurring deposit, senior citizen savings scheme, PPF, Kisan Vikas Patra, five-year National Savings Certificate and Sukanya Samriddhi Yojana every quarter.