We all know that central government revises small savings interest rates every Quarter(3 Months). But even RBI insists that small savings schemes interest rates are far higher than bank fixed deposits, central government keeps small savings interest rates unchanged for the 9th consecutive Quarter though there are rumours that central government will revises small savings interest rates this time as government has already slashed epf interest rates recently to lower levels.
Whatever may be this news is really a bonanza to savers as they might get some relief from this high inflation. Even though these products don’t beat inflation savers are set to deploy their savings as there is no risk involved in these products.
Popular Saving Instruments Interest Rates applicable for April- June Quarter–
- PPF( Public Provident Fund)-7.1%
- Sukanya Samriddhi Yojana (SSY)-7.6%
- Kisan Vikas Patra(KVP)-6.9%
- National Savings certificate(NSC)-6.8%
of the above PPF, Sukanya Samriddhi Yojana(exclusively for girl child below 10 years of age) qualifies for E-E-E(Exemption under principle, Exemption on interest earned, Exemption on maturity value)under section 80(c) of the income tax act 1962 while National Savings Certificate(NSC) qualifies for tax deduction under 80(c) but the maturity proceeds under NSC are taxable in the hands of the depositor. Do note this while investing in these products