PPF Interest Rate: Alert! Your Public Provident Fund, NSC, Sukanya Samriddhi Yojana, others to get this much interest rate

PPF Interest Rate 2019-20: In a bid to push small savings, the central government has left PPF interest rate, NSC and other small savings interest rates unchanged after a meeting on this issue was held 31st December. The Central Government had announced that the PPF interest rate for the fourth quarter in FY19-20 will remain as it was in the third quarter of FY19 means at 7.9 per cent. Similarly, in other small savings schemes that includes Sukanya Samridhi Yojana, National Savings Certificate or NSC, Senior Citizens Saving Scheme (SCSS), and others, would continue to fetch similar interest rates as they used to earn in third-quarter i.e. October-December 2019.

As per the Government order from January to March 2020 PPF interest rate would remain 7.9 per cent, SCSS interest rate would be 8.6 per cent and for Sukanya Samriddhi Yojana interest rate will remain at 8.4 per cent. Similarly, post office term deposit would continue to fetch 6.9 per cent to 7.7 per cent interest in March 2020 quarter. The Department of Economic Affairs made an announcement in this regard on the 31st of December 2019. The interest rate on Kisan Vikas Patra will continue to remain at 7.6 per cent while the 5 year NSC would fetch 7.9 per cent interest in January to March 2020.

Source: Department of Economic Affairs

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Readers should know that Centre reviews interest rates on small savings schemes on a quarterly basis. Centre then decides the small savings interest rate on the formula given by the Shyamala Gopinath Committee, which maintains that interest rates given on the small saving schemes would be 0.25 per cent to 1 per cent higher than the government-backed bond returns in the same maturity period.