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Small Savings Scheme: A decision on interest rates for small savings schemes like Public Provident Fund (PPF) and Sukanya Samriddhi will be taken on September 30. In fact, the government reviews interest rates on a quarterly basis. The interest rate for the October-December period in this series will be reviewed and decided on September 30.
What will happen to PPF: It is possible that there will be no change in PPF interest rates this time as well. Let us tell you that there has been no change in interest rates on PPF since April 2020. Currently, investors earn interest at the rate of 7.10 percent on PPF deposits. According to SAG Infotech MD Amit Gupta, the finance ministry may keep the interest rate on PPF at 7.10 per cent for the October-November quarter only. The interest rates applicable for each quarter are credited to the investor’s PPF account at the end of the financial year. An individual can deposit up to ₹1.5 lakh in a year in PPF account. You can claim tax exemption on this annual deposit amount under Section 80C. Apart from this, the PPF maturity amount is also tax free.
How much increase in September quarter
Let it be known that interest rates on small savings schemes were increased by 30 basis points for the July-September 2023 quarter. The revision was specifically for 1-year and 2-year fixed deposits and 5-year recurring deposits.
Status of April quarter
It increased by up to 70 basis points during the April-June quarter. The interest rate on National Savings Certificate (NSC) has been hiked the most. Its interest rate is 7.7%, which was earlier 7%. Interest on Sukanya Samriddhi, a popular savings scheme for girls, has been hiked from 7.6% to 8%. The interest rate for Senior Citizen Savings Scheme is 8.2%, for Kisan Vikas Patra is 7.6%.