Compare Small Saving Schemes Rate Of Interest For Year 2016-17 which will be effective from April, 1st, 2016. Government of India has changed the Interest rate of Many of their Small Saving Schemes. These list included many popular investment instruments like Public Provident Fund (PPF), National Saving Certificate (NSC), Sukanaya Samridhi etc. There are many reason to regulate the interest rate of these popular investment option i.e. to restrict the inflation, to make the market competitive and reduce the government liabilities in long run.
This is to be noted that Earlier Finance minister has announced that they would link the many of the small saving schemes with government securities or Gilts like post office term deposits up to three years , Kisan Vikas Patra (KVP), and five-year recurring deposit (RD). They have also decided to revise the Interest rate on these saving scheme on every quarter as link 90 days bond. Next year onward the Interest rate on various saving schemes will be calculated on quarterly basis i.e. for April to June Quarter, July to Sept Quarter and so on.
Read : Compare Best Saving Schemes To Invest
List of Saving Schemes with their Interest rate w.e.f 01-04-2016 are ending Quarter 30th June 2016
Small Savings Schemes Interest Rate Cut on PPF,Post Office, KVP etc.
| Saving Instrument | Maturity | Current Rate Of Interest | Revised Interest Rate
Quarter April-June 2016 |
Minimum Investment | Maximum Investment |
| Kisan Vikas Patra
(KVP) |
114 Months | 8.70 | 7.80 | 1,000 | No Limit |
| Recurring Deposit
(Post Office) |
5 Years | 8.40 | 7.40 | 10 | No Limit |
| National Saving Certificate
(NSC) |
5 Years | 8.50 | 8.10 | 1,000 | No Limit |
| Public Provident Fund (PPF) | 15 Years | 8.70 | 8.10 | 500 | No Limit, For Tax 1.50 lacs |
| Post Office Monthly Income
(MIS) |
5 years | 8.40 | 7.80 | 1500 | 4.50 lacs & 9 lacs |
| Senior Citizen Saving Scheme
(SCSS) |
5 years | 9.30 | 8.60 | 1000 | 15 lacs |
| Employees Provident Fund
(EPF) |
After Retirement | 8.75 | 8.75 | NO Limit | No Limit |
| Sukanaya Samridhi (SSA) | 21 years (Girl) | 9.20 | 8.60 | 1000 | No LImit, Rs 1.50 for tax |
| Post Office FD | 1,2,3,5 | 8.40 | 7.1,7.2,7.4,7.9% | 200 | No Change |
Where To Invest my Money when Rate of Interest fall ?
A very usual query for investment. There are different views by experts on trick to invest in case of falling interest rate. All the investment option except equity are some how related to each other whether they are Bank’s Fixed Deposit, Recurring deposit, NSC, PPF , Post Office schemes etc. Currently if you compare the Bank Fixed Deposit rate you will see the maximum rate of Interest rate with the bigger bank are somewhere between 7 to 7.50% for One year with Income Tax on interest income above 10,000 in a financial year. The optimum return is some where 6.90 to 7.40%. Where as in other instrument like KVP and NSC the rate of interest for the period are little higher. The investment are purely need base and one should invest as per their requirement and goal. After all Loosing money in investment is better than gain.
