Have Sukanya Yojana, NSC, SCSS accounts? Small savings schemes interest rate cut today! Worried? Then read this

The Narendra Modi Government has effected a cut in Small Saving Schemes interest rates and that includes Sukanya Samriddhi Yojana, Senior Citizen Saving Scheme or SCSS, National Saving Certificate or NSC, Public Provident Fund or PPF, etc. But, this is not a worry for those who already have these accounts. According to tax and investment experts, this cut in small saving schemes interest rate will have a bearing on only those who already have a PPF account. The rest of the account holders need not worry as those small saving scheme interest rates will not be applicable to them.

Speaking on the small savings scheme interest rate, Jitendra Solanki, a SEBI registered tax and investment expert said, "Small saving schemes like Sukanya Samriddhi Yojana, Senior Citizen Saving Scheme or SCSS, National Saving Certificate or NSC attract interest rate available at the time of account opening. That interest rate remains available for these accounts till they mature. These new interest rates will be applicable only on those who are going to open new small saving scheme accounts."

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Speaking on the latest Small Savings Scheme interest rate cut Balwant Jain, a Mumbai-based tax and investment expert said, "These new small savings scheme interest rates will be applicable on old PPF account only. Rest of the Small Savings Scheme like Sukanya Samriddhi Yojana, Senior Citizen Saving Scheme, NSC will fetch the same interest rate which was given at the time of its opening. So, those who already have Sukanya Account, SCSS and NSC account, they need not bother about the change in small savings interest rates."

So, if we go by the tax and investment experts' views, this rate cut in small saving schemes will have an impact on the existing PPF accounts only. The rest of the small saving schemes won't get affected by this central government's decision as they attract interest rates at the time of its account opening. However, those who want to open new accounts will get lower amounts.