Read on the application
Small Savings Scheme: People are investing heavily in small savings schemes. Investments in small savings schemes like Senior Citizen Savings Scheme (SCSS) and Mahila Samman Savings Certificate (MSSC) have reached record levels. Deposits in Senior Citizen Savings Scheme increased 2.5 times year-on-year in April-September to Rs. 74,675 crores. According to a senior official, this is higher than the Rs collected in the same period a year ago. 28,715 crore is 160 percent more than Rs. Further, the total collection under Mahila Samman Savings Certificate during the September quarter was Rs. 13,512 crores.
What is the interest rate?
Let us tell you that the interest rate of Senior Citizen Savings Scheme was increased from 8 percent to 8.2 percent in April-June this year and since then it has remained unchanged. From April this year, the investment limit in the scheme for the elderly was increased from Rs 15 lakh to Rs 30 lakh. Other small savings rates were broadly unchanged for the October-December quarter, with the interest rate on one small savings scheme – the 5-year recurring deposit – increased by 20 basis points.
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What is the government’s plan?
According to a report in Indian Express, the government may now also consider post-tax returns while determining quarterly rates for small savings schemes like PPF. Let us tell you that PPF is one of the highest interest paying schemes among small savings schemes. There has been no change in PPF interest since April 2020.