PPF, KVP, Post Office Deposits and Interest rates
While investors are moving towards the stock market to multiply their returns, they are also looking for fixed-income investment schemes to diversify their asset allocation. Small savings schemes like the Public Provident Fund (PPF), sukanya Samriddhi Yojana (SSY), and Post office Deposits are safe government-guaranteed savings schemes that offer fixed income.
Currently, the interest rates on popular PPF and savings deposits are 7.1 per cent and 4 per cent, respectively. The interest rate on Kisan Vikas Patra is 7.5 per cent. The amount invested will mature in 115 months. The interest rate on National Savings Certificate (NSC) is 7.7 per cent. The interest rate for the monthly income scheme gives investors 7.4 per cent.
Interest rates for small savings schemes such as PPF, Post office Savings and Term Deposit, National Savings Certificate and SSY are reviewed at the end of each quarter and accordingly decided for the next quarter.
Latest Interest Rates for Small Savings Schemes:
Savings deposit: 4 percent
1-Year Post office Time Deposits: 6.9 percent
2-Year Post office Time Deposits: 7.0 percent
3-year Post office Time Deposits: 7.1 percent
5-Year Post office Time Deposits: 7.5 percent
5-Year Recurring Deposit: 6.7 percent
National Savings Certificates (NSC): 7.7 percent
Kisan Vikas Patra: 7.5 per cent (maturing in 115 months)
Public Provident Fund: 7.1 percent
Sukanya Samriddhi Account: 8.2 per cent
Senior Citizen Savings Scheme: 8.2 percent
Monthly Income Account: 7.4 percent.
Small Savings Schemes have three components viz., Savings Deposit, Social Security Schemes and Monthly Income Scheme.
Savings deposits include 1-3 years term deposits and 5-year recurring deposits. These include savings certificates such as National Savings Certificates (NSC) and Kisan Vikas Patra (KVP). Social security schemes include Public Provident Fund (PPF), sukanya Samriddhi Account, and Senior Citizen Savings Scheme. There is a monthly income account under the monthly income scheme.