Consider the following about small savings schemes (SSS)?

1. It includes National Saving Certificate and Public Provident Fund.

2. Interest rates for small savings schemes are notified on a quarterly basis.

3. The girl child savings scheme Sukanya Samriddhi Yojana is also a part of small savings schemes.

Which of the statements given above is/are correct?

Solution

The government kept interest rates unchanged on small savings schemes, including NSC and PPF, for the 2^nd quarter of 2022-23. The interest rate on small savings schemes has not been revised since the first quarter of 2020-21. Interest rates for small savings schemes are notified on a quarterly basis. · Public Provident Fund and National Savings Certificate will continue to have an annual interest rate of 7.1 per cent and 6.8 per cent, respectively, in the second quarter of this fiscal. · The one-year term deposit scheme will continue to earn an interest rate of 5.5 per cent in the second quarter. · The interest rate on the five-year senior citizens' savings scheme will be retained at 7.4 per cent. The interest on the senior citizens' scheme is paid on a quarterly basis. · The girl child savings scheme Sukanya Samriddhi Yojana will fetch 7.6 per cent. · The interest rate on savings deposits will continue to be at 4 per cent per annum. · Term deposits of one to five years will fetch an interest rate in the range of 5.5-6.7 per cent, to be paid quarterly while the interest rate on five-year recurring deposits will earn a higher interest of 5.8 per cent 1. National Small Savings Certificate (NSC): National Savings Certificates, popularly known as NSC, is an Indian Government savings bond, primarily used for small savings and income tax saving investments in India. It is part of the postal savings system of India Post. 2. Kisan Vikas Patra (KVP): Kisan Vikas Patra is a small savings instrument that facilitates people to invest in a long-term savings plan. This scheme was introduced by India Post in 1988. Even though this scheme was popular, a Government Committee formed in 2011 suggested that KVP could be misused for purposes like money laundering. In 2014, Kisan Vikas Patra was relaunched with a number of changes including mandatory PAN card proof for investments over Rs.50,000 and income source proof for investments exceeding Rs.10 lakh. 3. Sukanya Samriddhi Scheme: Sukanya Samriddhi Account is a Government of India backed saving scheme targeted at the parents of girl children. The scheme encourages parents to build a fund for the future education of their female child. 4. Public Provident Fund (PPF): Public Provident Fund Scheme is a Central Government scheme, framed under the PPF Act of 1968. Thus we can say PPF is a government backed, long term Small Savings Scheme. The Scheme offers an investment avenue with decent returns coupled with income tax benefits. 5. Senior Citizens' Savings Scheme (SCSS): The Senior Citizens' Savings Scheme (SCSS) is a government scheme that helps seniors save money for retirement and receive quarterly interest payments. This account can be created at any bank or post office singly or jointly with your spouse.