Bringing cheers to these who place their savings in fixed revenue investment, the government has decided to hold the interest price on tiny savings schemes unchanged for the quarter January to March 2021.
The interest price on PPF remains at 7.1 per cent per annum when for the Senior Citizen Savings Scheme, the interest price is 7.4 per cent per annum. The 1-year time deposit, the price of interest stands at 5.5 per cent.
The interest prices on post workplace savings schemes are revised each and every quarter by the government on the yield on government bonds. The government had earlier kept the interest prices on tiny savings unchanged for the quarter of July to September and October to December 2020.
Experts think, post workplace schemes will continue to attract investors more than bank deposits as the banks are delivering interest of about 6 per cent and significantly less across most tenures.
There is no transform in the price of interest on post workplace tiny savings investments such as National Savings Certificates (NSC), Kisan Vikas Patra (KVP), Time-deposits, Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY).
For the investor who invests in NSC, KVP, Time deposits, Senior Citizens Savings Scheme (SCSS), the price of interest remains fixed till maturity. However, investors of PPF and Sukanya Samriddhi Yojana (SSY) see a revision in the price as and when the government revises the price at every quarter of any monetary year.
The post workplace schemes carry a sovereign assure on the complete quantity invested and are, hence, viewed as hugely secure. However, ahead of investing, 1 really should make positive about the tax liability of the interest that you will earn on PO schemes. Some of the schemes may perhaps have a taxable interest. Invest in them by linking to your extended term demands and maintaining asset allocation across equity and debt into consideration.