Can small savings schemes earn me good returns?

By iTrust Financial Advisors (www.iTrust.in)

Small savings schemes, such as PPF, NSC, KVP, post office deposits, are very topical in the media these days. These schemes are currently popular because they offer higher rates when compared to bank deposits, as well as offer the security of your capital.

However earlier this week the government announced that it is beginning a review of the centrally administered interest rate offered in these schemes. So what should you do if you are invested in these schemes or wanting to invest in these schemes? Read more to find out…..

What are small savings schemes?

Small savings schemes are Government administered savings schemes where the interest earned is assured and you earn a fixed return (fixed income schemes). Some examples of these schemes are:

- Public Provident Fund (PPF)

- National Savings Certificates (NSC)