There is a direct relationship between the returns of small savings investments and government securities. The yield of government securities has exceeded 7.3%. Generally, the interest rates of PPF and other small savings schemes are higher than the yield of securities.
New Delhi. Those investing in Public Provident Fund (PPF) can now get good news after 27 months. The government can soon announce to increase the interest rates of all small savings schemes including PPF. After the jump in the yield of government securities, it is now being speculated that the government will increase the interest rates. The interest rates of PPF and other small savings schemes are reviewed every quarter. There will be a review at the end of this month. At present, 7.1 percent interest is being available on PPF. At the same time, the government is giving interest at an annual rate of 7.6 percent to those investing in Sukanya Samriddhi Yojana.
According to a report by Moneycontrol, an expert said that there is a direct correlation between small savings investments and returns of government securities. The yield of government securities has exceeded 7.3%. Generally, the interest rates of PPF and other small savings schemes are higher than the yield of securities. At present, these rates are less than the bond yield. There is a provision to pay interest up to 1 percent more than the average interest rate of securities on PPF. The higher the market yield of government securities, the interest rates of small savings schemes like PPF will also be increased in the same proportion.
Interest rate stable for 27 months
There has been no change in the interest rate of PPF for the last 27 months. The last time interest rates were revised was during the April-June 2020 quarter. Apart from Public Provident Fund, small savings schemes include National Saving Certificate, Kisan Vikas Patra, Time Deposit, Senior Citizen Saving Scheme and Sukanya Samridhi Yojana.
Now getting so much interest
At present, Public Provident Fund investors are getting interest at the rate of 7.1 percent, while the interest rate of National Savings Certificate is 6.8 percent. The interest rate for the Senior Citizen Savings Scheme is 7.4%. At the same time, the government is giving interest at an annual rate of 7.6 percent to those investing in Sukanya Samriddhi Yojana.
