The government reviews the interest rate of small savings schemes every three months. However, there has been no change in the interest rate for the last 27 months and it is stable. Now hopefully this drought will end.
Investors investing in small savings schemes like Public Provident Fund (PPF) and Sukanya Samriddhi can get a gift in the month of October. It is being speculated that the interest rate of small savings schemes may be increased for the October to December quarter.
Let us tell you here that the government reviews the interest rate of small savings schemes every three months. However, there has been no change in the interest rate for the last 27 months and it is stable. The last time interest rates were revised was during the April-June 2020 quarter.
Why is it expected: Interest rate hike is expected due to rise in government securities (G-sec) yield. These are the bonds of the government, on the basis of which the interest rates are increased or cut. Currently, the interest rate of PPF stands at 7.1 per cent while the government securities yield has already crossed 7.3 per cent.
What experts say: According to Amit Gupta, MD, SAG Infotech, the interest rate of PPF can be increased soon. Amit Gupta said- This increase in the yield of government securities will not only increase the interest rate on PPF, but it will also affect the rates of small savings investment.
What are the interest rates now
- Public Provident Fund (PPF) – 7.1 percent
- National Saving Certificate (NSC) – 6.8%
- One Year Term Deposit Scheme -5.5 percent
- Senior Citizen Saving Scheme (SCSC) – 7.4%
- Sukanya Samriddhi Yojana -7.6 percent
- 5 year RD – 5.8%
- Savings deposit interest rate – 4%
- Term deposit interest rate from 1 to 5 years – 5.5-6.7 percent
