Returns on small savings remain attractive despite no rate reviews

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

On June 30, the government decided to leave interest rates on Small Saving Schemes (SSS) unchanged. Expectations that the rates would be reset upward amid a rising interest-rate environment were high. Investors need to evaluate how they stack up against other high credit quality fixed-income options before putting money in them.

Returns still attractive

Experts say the returns of some SSS still remain attractive. “A few schemes like Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) still look attractive as they offer tax deduction. Interest income from them is also tax exempt,” says Pankaj Mathpal, managing director,