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  • Category: Miscellaneous

    Let's know the latest rates of interest

    All of you now know that presently interest rates in fixed-income instruments are directly linked with prevailing market rate announced by RBI from time to time. So, it is necessary to check the interest rates at the beginning of each quarter. As this is January, the beginning of the last quarter of the Financial Year, when most of us invest in tax-saving instruments and other financial instruments, I am indicating the current rates of interest offered by different fixed instruments. Please check the rates in the next Para.

    Post Office Recurring Deposit (PORD) for 5 years: 7.30% p.a.
    Post Office Time Deposit (POTD): 7.0% p.a. for 1 year, 2 years, 3 years and 7.8% p.a for 5 years
    Post Office Monthly Income Scheme (POMIS): 7.7% p.a.
    Senior Citizen Savings Scheme (SCSS): 8.7% p.a.
    Public Provident Fund (PPF): 8.0% p.a.
    National Savings Certificate (NSC): 8.0% p.a.
    Pradhan Mantri Vaya Vandana Yojana (PMVVY): 8.0% p.a.
    Kisan Vikas Patra (KVP): 7.7% p.a.
    Sukanya Samriddhi Yojana (SSY): 8.5% p.a.

    It is clarified that if an investor invests in these schemes during the quarter of 1st January, 2019 to 31st March, 2019, he/she will get the above rates which is fixed for the entire tenure of the investment.

    I hope this would be helpful for all.
  • #656996
    Yes. Good information. Based on this information a person can decide which is the best way to save or invest some money. Senior Citizens savings scheme appears to be the best among the mentioned. These days the post office rates appear to be better than bank rates in some aspects. Even ATMs of Post Offices appears to be better than bank ATM. Sukanya Samriddhi Yojana is not for all. That is only for the baby girl children and account can be opened by the parent of the girl child and the parent only can operate this account. This post has given good details about various schemes and the rate of interests.
    drrao
    always confident

  • #657001
    Sukanya Samriddhhi Yojna (SSY) is an excellent instrument for investment. Unfortunately, I missed this opportunity because when the scheme first came, my daughter crossed 14 years of age.
    Come on, have a fight. Don't shoot and scoot.

  • #657003
    Thanks for posting the useful information in nutshell. For the middle income group this information is very important as to know the relative merit of these investments and the interest rates there.

    Those who will invest today will get these rates for the investment period even if the rates decline in between. That is a good thing.

    Thoughts exchanged is knowledge gained.

  • #657019
    A good snapshot of the interest regimes of different savings and deposit schemes available for the common investors in our country. Almost all the schemes are nicely covered here and as it is the financial year end coming close the information will be handy for all the persons interested in these schemes.

    I just want to mention that these interest values go on changing with time depending upon the economic condition of a country and as a thumb rule if the country develops and becomes strong globally and financially these interest rates will slip down to 4-5% or even lower, which may look a surprising thing to many readers, but it is true and another thing is if such a thing happens the inflation rate will also go down to almost negligible values.

    Some of the members who are in their sixties or seventies might be remembering that there was a time when some of these rates were hovering in the range of 12-13% which also may appear as surprising to some of the readers but it is true.

    Due to this going down of interest rates banks are shying for long term deposits with higher interest rates. If you go to a bank they will tell you that highest interest rate is for a tenure of 2-3 years and if you want to go for a longer period FD, the interest rates will be lower.

    Knowledge is power.

  • #657022
    Yesterday, I was interested to know the interest rates for my Savings Bank account. Today, Partha has clearly brought out the interests for various accounts. Good, Mr. Partha.

    Once upon a time, I have invested my savings for a good interest of 12% and above. OMG! How the interest rate has come down below 8%? What a great interest was/is shown by our government on the interest rates! Common man's interest suffers heavily.

    A sum invested in FD in the past was doubled up in 5 years. Now it is very difficult to get doubled even after 10 years.

    No life without Sun

  • #657038
    Both Mr. Umesh and Mr. SuN are right. I still remember that in 1984, my father was discussing with my Maths. teacher when the rate of interest of Provident Fund was slashed from 12% to 11% p.a. When I first joined Government Service, the rate was 10%. When I changed my job and came to Delhi, it was 10%. After some time, it was slashed to 9% p.a. The downward journey started.

    Now the interest rate has been linked with market return and is reviewed in every quarter. Sometimes, it decreases. Occasionally, it remains stationary. And in very few occasions it increases by a few percentage points.

    Come on, have a fight. Don't shoot and scoot.

  • #657066
    A very informative thread by the author highlighting the interest rates of various fixed instruments. We are in the last quarter of the financial year and now if somebody is planning for investment, this information will come in handy.

    The economic growth of the country has a major role to play for selecting the interest rates of fixed instruments and the constant decline in the interest rates indicates a positive trend in the growth sector. The senior citizens, who depend on their savings expect a higher return from their investments because of the rising cost of living and I think the government can plan out something solely for the senior citizens taking into account their financial conditions.

    Sankalan

    "Life is easier when you enjoy what you do"


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