PEA interest rate: At a time when the markets are experiencing high volatility coupled with a general downturn, several Indian citizens will look to their small savings schemes including their postal savings schemes to be their saviors by investing money and obtaining fixed returns. Small post office savings plans are very reliable as they are backed by the government and are not subject to stock market movements. This includes the Monthly Savings Scheme, National Savings Certificate, Sukanya Samriddhi Yojana, Old Age Savings Scheme or State Provident Fund, which have a fixed rate of return set by the government at the start. of each quarter. Several postal savings plans, for example the PPF, offer much higher interest than banks.
Those who have invested money in the National Savings Certificate, Sukanya Samriddhi Yojana, Senior Citizens Savings Scheme or Public Provident Fund (PPF) will likely receive an interest rate update on June 30. The government could consider modifying the PPF, NSC or SSY. plan interest rates in June, which benefits plan investors. The Center announces new rates for postal savings at the end of each quarter. June 30 marks the end of the first quarter of fiscal year 22-23. Over the past few months, the government has kept interest rates unchanged.
Current interest rate on PEAs
Here are the current interest rates on postal savings plans, which came into effect from April 1 this year and will be valid until the end of this month, June 30.
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%
viii. 3-year term deposit: 5.5%
ix. 5-year term deposit: 6.7%
X. Recurring deposit over 5 years: 5.8%
xi. Savings plan for 5-year-olds: 7.4%
xii. 5-year monthly income account: 6.6%
Why should the government increase PPF, SSY, MIS interest rates now?
In this context, questions may arise: if the government has noted an increase in the interest rates of the MIS, PPF, Sukanya Samriddhi Yojana systems during all this time, why should it do the same now. Indeed, the Reserve Bank of India raised its repo rates by 90 basis points during two meetings of the monetary policy committee to control rising inflation in the country. While this means borrowers will have to pay more interest over multiple loan terms, it also means investors can get better returns. The results are already being felt with several nationalized and private banks raising their FD and RD rates. This is why the government may take a call next month to raise PPF interest rates, MIS interest rates and SSY interest rates.
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