How the changes in Small Savings Schemes benefits investors

Last year when interest rates on small savings schemes & PPF were made market linked , many investors raised queries whether they will still be a good instruments to invest. For many years these schemes have been used in building a retirement corpus or to meet other long term goals such as children’s marriage expenses and education. A sudden change in the rules has made investors rethink on these avenues.

The biggest change has been brought in the interest rates of these instruments. As per the revised structure, the rate of interest on all small savings schemes is now aligned with G-Sec rates of similar maturity, with a spread of 0.25% (Excluding 10 year NSC & SSC where spread is more).

Read to know more about impact of changes in small savings schemes.