Small Saving Schemes: The government has increased the interest rates of all savings schemes but there has been no change in the rate of PPF.
Small Saving Rate Hike: On September 30, 2023, the Finance Ministry will review the interest rates of small savings schemes. And it is believed that the Central Government may announce an increase in the interest rates of its savings scheme. There is a possibility that after reviewing the interest rates for the third quarter of the current financial year from October to December, a decision can be taken to increase the interest rates of other savings schemes including Public Provident Fund.
On June 30, 2023, when the new rates were announced by reviewing the interest rates for the period from July to September, the interest rates of only one year and two year post office deposit schemes were increased by 10 basis points. . So the interest rate on 5 year recurring deposit was increased from 6.2 percent to 6.5 percent.
RBI increased the repo rate by 2.50 percent between May 2022 and February 2023. During this period, banks increased interest rates on deposits. So the government has increased the interest rates on everything from Sukanya Samriddhi Yojana to Kisan Vikas Patra and National Saving Certificate and Senior Citizen Saving Scheme. But there has been no change in the interest rates of PPF.
In the government’s savings schemes, 7.70 percent interest is being given on NSC i.e. National Savings Certificate. 8 percent interest is being given on the interest rate of Sukanya Samriddhi Yojana. Kisan Vikas Patra with maturity period of 115 months is getting 7.5 percent interest annually. At the same time, 8.2 percent interest is being given on Senior Citizen Saving Scheme.
Due to increase in interest rates in the financial year 2023-24, investment in government savings schemes has increased. In such a situation, to make these schemes more attractive, it is believed that the Finance Ministry can increase the interest rates in other savings schemes including PPF.