PPF

Rate on National Savings Certificate steeply raised by 70 bps, PPF kept unchanged

While Sukanya Samriddhi Yojana offers a higher interest rate, PPF can be continued for a longer tenure and offers greater flexibility after 15 years

There are three approaches investors may take as they decide their asset allocations

Senior Citizens' Savings Scheme remains a must-have for those who need regular cash flows after retirement

Investors who want to avoid their long lock-in can choose from a host of other high credit quality options

The interest rate on small savings schemes has not been revised since the first quarter of 2020-21

The government on Thursday kept interest rates on small savings schemes, including NSC and PPF, unchanged for the first quarter of 2022-23 due to an elevated level of inflation.

One significant point investors must remember while investing in PPF is that they must put in the money at the right time to maximise the return they earn from it.

Counter the cut in EPF rate with an asset-allocated retirement portfolio and using instruments like NPS

NPS and medical insurance are sound non-Section 80C options

The Employees' Provident Fund Organization recently slashed the interest rate on EPF from 8.5% to 8.1% for 2021-22. This is the lowest rate in more than four decades. But it still holds the edge.

Take into account tax benefit and payout frequency as well when selecting a scheme

While govt's market borrowings have doubled from FY16 to FY22, NSSF loans to finance fiscal deficit have grown 11x

Use a mix of equity funds, PPF, EPF and NPS; review and correct course periodically

However, do so only if your asset allocation requires you to invest more on the debt side, and you are comfortable with the long lock-in

West Bengal leads the annual state wise table of contribution to small savings at 15.09 per cent. For the year FY18, Tamil Nadu is fifth in the small savings pecking order at 4.8 per cent

The rate of interest on PPF has declined from 7.1 per cent earlier to 6.4 per cent now

Rules apply only for cash withdrawals of non-ITR filers

Costlier loans from NSSF, at 7.4% interest rate, will occupy more than 10% share in govt's outstanding public debt soon, all to give the small saver a higher interest rate than the market

The government kept the interest rates on small savings schemes, including PPF and NSC, unchanged for the January-March quarter