The central government may soon increase the interest rates of small savings schemes. In this regard, the Finance Ministry will review the interest rates for the second quarter (July-September) of the current financial year by June 30, after which a decision can be taken to increase the rates. The government kept interest rates unchanged in the last quarter. It is believed that this time small investors can get relief.
Currently, the government is running a total of 12 types of small savings schemes including Post Office Savings, PPF, Sukanya, Senior Citizen, National Savings Certificate. Through this, the government reviews and revises the interest rates every three months to give more profit to the investors in the long run. However, no change has been made for the first quarter (April-June). This was the first time in seven quarters that the government did not increase interest rates on these small savings schemes.
Neither Sundar Pichai nor Satya Nadella are the highest paid CEOs of Indian origin.
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The rates of two schemes were hiked in January
For the last quarter of the financial year 2023-24, the government increased the interest rates of only two schemes. In which the interest rate of Sukanya Samriddhi Yojana was increased from 8 percent to 8.20 percent. Apart from this, the interest rate for three-year time deposits has been increased from 7 percent to 7.1 percent.
No change in PPF rates for four years
There has been no change in the rate of PPF for the last three years. It was last revised in April-June 2020, when it was reduced from 7.9 percent to 7.1 percent. During the Corona period, the government revised and reduced the interest rates of many savings schemes. Since then the interest rate of PPF has remained unchanged at 7.1 percent. Meanwhile, several revisions were made in interest rates but no change in PPF. This time, it is hoped that the government can provide some relief here as well.
What the experts say
According to experts, interest rates on all small savings schemes, including the PPF, are a sensitive political issue for the government. There is pressure to raise rates to benefit millions of small savers. This will be a step towards encouraging local savings. However, an increase in interest rates will increase government expenditure.
Current Interest Rates (in Percent)
Savings Account 04
One year FD 6.9
Two years FD 7.0
Three Year FD 7.1
Five year FD 7.5
Senior Citizen Deposit 8.2
Kisan Vikas Patra 7.5
Sukanya Samriddhi 8.2