Investors in popular small saving schemes such as Public Provident Fund (PPF), Sukanya Samriddhi Account (SSA) and Senior Citizens Savings Scheme (SCSS) can heave a sigh of relief.
Despite talk of reducing interest rates on these popular schemes, particularly on PPF, due to prevailing benign interest rates, the department of posts has decided to not tweak rates for the July-September 2020 quarter. In March, the interest rate on the highly popular PPF was slashed by 80 basis points to 7.1 per cent, while SCSS saw an even steeper cut of 120 bps, from 8.6 per cent to 7.4 per cent.
Attractive rates retained
Even though small saving schemes’ interest rates have been linked to government security yields since 2011 and are reviewed every quarter, rarely do they move in tandem with market realities to protect small savers’ interests.