The government has disappointed a majority of investors by not increasing the interest rates on some of the most popular small savings schemes such as Senior Citizen Saving Schemes (SCSS), Monthly Investment Scheme (MIS), 5- & 10-year National Saving Certificates (NSC) and Public Provident Fund (PPF).

PPF, NSC and SCSS are the most popular tax-saving investment options for small investors as they are eligible for income tax deduction up to Rs 1 lakh under Section 80 C of the Income Tax Act. However, interest rates on post-office deposit schemes of different tenures have been increased by 10-20 basis points.

The interest rates on one- and two-year fixed deposits have been increased by 20 basis points from 8.2% to 8.4%, while three-year fixed deposit and fiveyear recurring deposit rates have been increased from 8.3% to 8.4%. The interest on the five-year fixed deposit scheme has been increased from 8.4% to 8.5%. The interest on PPF remains unchanged at 8.7%, 10-year NSC at 8.8%, five-year NSC at 8.5% and SCSS at 9.2%. The changes will come into effect from April 1. The government revises interest rates on small savings schemes every financial year and notifies them before April 1.