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Small Savings Schemes: Latest interest rates on PPF, NSC, Sukanya Samriddhi and more

Small Savings Schemes Interest rates 2021: We take a look at the current interest rates of the popular small savings schemes such as Public Provident Fund (PPF) and National Savings Certificate (NSC). Here's how much you can earn from these schemes by investing Rs 10,000.

By: Express Web Desk | New Delhi |
Updated: April 1, 2021 3:00:05 pm
rupee, rupee vs dollar, indian rupeeA money changer holding currency notes in front of RBI Kolkata on Tuesday, January 30, 2018. (Express photo by Partha Paul)

The government on Thursday withdrew its order that indicated a sharp reduction of 40-110 basis points in small savings schemes including Public Provident Fund (PPF) and National Savings Certificate (NSC).

Finance Minister Nirmala Sitharaman tweeted earlier in the day saying that the “orders issued by oversight shall be withdrawn”.


With the interest rates returning to their previous levels, we take a look at the top small saving schemes and how much an individual earns from them by investing a principal amount of Rs 10,000.

Public Provident Fund (PPF)

A Public Provident Fund or PPF is a long-term tax-saving instrument that gives a fixed rate of interest annually on the amount that you invested during the year. It has a lock-in period of 15 years. In a PPF account, the interest you earn is tax-free and the amount that is deposited during the financial year can be claimed under Section 80C.

Following the finance minister’s announcement earlier in the day, the interest rate on PPF rolls back to 7.1 per cent which gets compounded annually. So, if you invest an amount of Rs 10,000, it’ll grow to Rs 10,710 after 1 year, thereby earning Rs 710 in interest.

National Savings Certificate (NSC)

A National Savings Certificate or NSC has a tenure of five years and comes with a fixed rate of interest. The interest rate available on NSC is 6.8 per cent which is compounded annually but payable at maturity.

If you invest an amount of Rs 10,000, it’ll grow to Rs 10,680 after 1 year, thereby earning Rs 680 through interest.

Sukanya Samriddhi Account Scheme

Sukanya Samriddhi Account Scheme also known as Sukanya Samriddhi Yojana is a savings scheme launched back in 2015 as part of the “Beti Bachao, Beti Padhao” initiative by the government. It can only be opened by the natural or legal guardian of a girl child aged below 10 years.

The account matures on completion of 21 years from the date of opening. In case, where the marriage of the account holder takes place before completion of a period of 21 years, the operation of the account shall not be permitted beyond the date of her marriage.

A minimum of Rs 1,000 and a maximum of Rs 1.5 lakh can be invested in this scheme in a financial year. Presently, it provides an interest of 7.6 per cent compounded annually.

If you invest Rs 10,000/- in this scheme, it will grow to Rs 10,760 after a year thereby earning Rs 760 through interest.

Kisan Vikas Patra

Kisan Vikas Patra is a savings scheme available at the India Post Office in the form of certificates. It is a fixed rate small savings scheme that doubles your investment after a predetermined period of time (presently 124 months at an interest of 6.9 per cent).

Investing Rs 10,000 here turns into Rs 10,690 after 1 year, giving Rs 690 through interest.

Senior Citizen Savings Scheme

Senior Citizen Savings Scheme offers a regular income with the highest safety and tax-saving benefits. It is available for those over 60 years of age. It provides tax deduction of up to Rs 1.5 lakh under Section 80C.

At present, it offers 7.4 per cent which is compounded quarterly and paid.

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An investment of Rs 10,000 will grow into Rs 10,708.06 in a year under this scheme, thereby fetching you Rs 708.06 through interest.

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