Savings scheme

PPF, Senior Citizen Savings Scheme, Sukanya Samriddhi Interest rates may soon rise; Find out here

Postal Savings Plan: Thousands of Indian citizens, especially those with low risk appetite, depend on various postal savings schemes designed for specific groups or individuals. Postal savings schemes are very reliable, as they are backed by the government and offer a higher interest rate than most banks – including the private and public sectors – in the country. However, for a long time, these small savings plans have not experienced an increase in interest rates when the government has revised them.

Bearing this in mind, investors of the National Savings Certificate, Sukanya Samriddhi Yojana, Savings Scheme for the Elderly or Public Provident Fund (PPF) are expected to receive good news later next month. According to media reports, the government may consider changing the interest rates of the PPF, NSC or SSY schemes in June, to benefit investors in these schemes.

No rate hike on small savings plans recently

As mentioned earlier, the government has not increased the interest rates of small savings schemes and postal schemes for a long time, especially after the Covid-19 pandemic which severely affected the economy of the country. In its quarterly review this year for the April to June quarter, the Center decided to maintain interest rates on small savings schemes like the Public Provident Fund (PPF) and Sukanya Samriddhi Yojana for the quarter. ended March 31, 2022. According to the rules, a government panel must meet shortly and notify the new rates for the quarter beginning in July 2022, by June 30, which is the end of next month and the first quarter of the year.

Current Interest Rates on Postal Schemes

Here are the current PEA interest rates, effective April 1 of this year.

I. Public Provident Fund: 7.1%

ii. National Savings Bond: 6.8%

iii. Sukanya Samriddhi Yojana: 7.6%

iv. Kisan Vikas Patra: 6.9%

v. Savings deposit: 4%

vi. One-year term deposit: 5.5%

vii. 2-year term deposit: 5.5%

vii. 3-year term deposit: 5.5%

viii. 5-year term deposit: 6.7%

ix. Recurring deposit over 5 years: 5.8%

X. Savings plan for 5 year olds: 7.4%

xi. 5-year monthly income account: 6.6%

Why will PPF and Sukanya Samriddhi Yojana rates increase now?

One wonders if the government has not raised interest rates for PPF schemes, Sukanya Samriddhi Yojana all this time, why is it likely to do the same now. Indeed, the Reserve Bank of India raised its repo rates by 40 basis points in an off-cycle meeting to rein in inflation. While this means borrowers will have to pay more interest on loans, it also has the flip side that investors will get better returns. Several nationalized and private banks are currently raising their FD and RD rates, and so the government may take a call next month to raise PPF interest rates and SSY interest rates.

Read all the latest IPL 2022 news, breaking news and live updates here.


Source link