PPF-NSC Interest Rates Cut: Small savings schemes like Public Provident Fund (PPF), National Savings Certificate (NSC) and Sukanya Samriddhi Scheme remain attractive as a safe investment option away from the volatility of the stock market. However, investors of these schemes may get a big shock. This is because their interest rates may be reduced. Know why the government can do this?
PPF-NSC Interest Rates Cut: Small savings schemes like Public Provident Fund (PPF), National Savings Certificate (NSC) and Sukanya Samriddhi Scheme remain attractive as a safe investment option away from the volatility of the stock market. However, investors of these schemes may get a big shock in the next financial year 2026. This is because the central bank RBI has cut the benchmark policy repo rate by 0.25 percent, so in such a situation the Finance Ministry can also cut the interest rates of small savings schemes. This information has been given to Moneycontrol by a government official. RBI’s Monetary Policy Committee (MPC) has reduced the repo rate from 6.50 percent to 6.25 percent today on 7 February.
New rates will be released before April
The senior official said that the cut in repo rate will increase liquidity and now the interest rates of FD can be reduced. He said that at present small investors are getting more interest on small savings. In a way, he has indicated a cut in the interest rates of small savings schemes. Their interest rates are to be reviewed and they will be announced before 1 April 2025. Earlier, the Finance Ministry had announced no change in interest rates on 31 December for the March 2025 quarter. There has been no change in it for the fourth consecutive quarter. The central government issues it every government. Usually it is determined by the market yield of government securities of similar maturity, but for some time now the link between the interest rate on small savings schemes and the yield on government securities has weakened.
What are the interest rates of small savings schemes right now?
At present, Sukanya Samriddhi Scheme is getting 8.2% interest per annum, 7.1% on three-year term deposits, 7.1% on PPF, 4% on Post Office Savings Deposit Schemes, 7.5% on Kisan Vikas Patra maturing in 115 months, 7.7% on National Savings Certificate (NSC), 7.4% on Monthly Income Scheme and 8.2% on Senior Citizen Savings Scheme.
Most Read Articles:
- EPFO New Notification: Big news! EPFO employees should complete this work by February 15, otherwise they will suffer loss
- BOB Released New FD Interest Rates: BOB has reduced the rates of fixed deposits, know the new rates details here
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
