Small Savings Scheme FD Rate: From April 1, investment in the Time Deposit (TD) small savings scheme fetches returns to the tune of 5.5-6.7 per cent, compared to 6.9-7.7 per cent in the quarter ended March 31. The Time Deposit scheme is a term or fixed deposit scheme in which the investment is locked in for a fixed period of time and the interest is paid on the investment at regular intervals. The Time Deposit small savings scheme is currently offered in four maturity options, ranging from one year to five years. A TD investment in one- to three-year options fetches a return of 5.5 per cent each, compounded quarterly, while a five-year lock-in gives a higher return of 6.7 per cent.
Here are the interest rates applicable to the four different types of Time Deposit – or fixed deposit (FD) – small savings schemes:
|Time Deposit (Fixed Deposit) Maturity Period||Interest Rate In January-March||Interest Rate In April-June||Compounding Frequency|
The government has lowered interest rates on most small savings schemes by 80-140 basis points (0.8-1.4 percentage point) for the first quarter of financial year 2020-21, according to an official statement.
Here are the interest rates applicable to other small savings schemes:
|Instrument||Interest Rate In January-March||Interest Rate In April-June||Compounding Frequency|
|Five-Year Recurring Deposit||7.2%||5.8%||Quarterly|
|Senior Citizen Savings Scheme (SCSS)||8.6%||7.4%||Quarterly and paid|
|Monthly Income Account||7.6%||6.6%||Monthly and paid|
|National Savings Certificate||7.9%||6.8%||Annually|
|Public Provident Fund||7.9%||7.1%||Annually|
|Kisan Vikas Patra||7.9% (matures in 113 months)||6.9% (matures in 124 months)||Annually|
|Sukanya Samriddhi Account||8.4%||7.6%||Annually|
Currently, the Ministry of Finance offers nine types of small saving schemes, including the 15-Year Public Provident Fund (PPF), the Senior Citizen Savings Scheme (SCSS) and the Sukanya Samriddhi scheme, and revises the interest rates applicable to them on a quarterly basis.