The new hikes for the third quarter of the current financial year FY19 starting from October 01 and ending at December 31 comes as good news for

lower and middle class people who will earn more interest rates on their deposits made in National Savings Scheme, Public Provident Fund ,Kisan Vikas Patra and Sukanya Samriddhi Account.

Investments in these schemes looks way more attractive than what banks are offering you
.
Public Provident Fund (PPF) will fetch 8% per annum from 7.6% previously. According to financial express, if an investor is in 30% tax bracket, the returns from PPF would be around 10.4% a year (Effective from October 1)

National Saving Certificate with 5 years and 10 years maturity will yield a 8% annual return fetching more in three months period while
Senior Citizens savings scheme which has a tenure of five years will fetch 8.7%.

Fresh accounts opened under Kisan Vikas Patra will take less time for mature and money will double in 9 years and 4 months for accounts opened till September 30.

While announcing the quarterly setting of interest rates in 2016, the finance ministry had said that rates in small savings schemes would be linked to government bond yields, and being an election year this financial year FY19 there won’t be any reduction in coming quarters so investors can invest in them with a 10 year yield.

Aritra Mukherjee, Wealth Manager Career Program – Edification Academy