Post Office Savings Scheme: Millions of Indian citizens, especially those with low risk appetite, depend on various post office savings schemes designed for specific groups or individuals. Post Office Savings Schemes are highly reliable, as they are backed by the government, and offer higher interest rates than most banks – including the private and public sectors – in the country. However, for a long time, these small savings schemes have not seen an increase in interest rates, when the government reviewed it.
With this in mind, investors of national savings certificateSukanya Samriddhi Yojana, Senior Citizen Savings Scheme Or Public Provident Fund (PPF) is likely to get good news at the end of next month. According to media reports, the government may consider changing the interest rates of PPF, NSC or SSY schemes in June, so that the investors of these schemes will benefit.
No rate hike on small savings schemes recently
As mentioned earlier, the government has not increased the interest rates of small savings schemes and post office schemes in a long time, especially after the COVID-19 pandemic which has hit the country’s economy badly. In its quarterly review for the April-June quarter this year, the Center decided to keep the interest rates on small savings schemes like Public Provident Fund (PPF) and Sukanya Samriddhi Yojana the same as the quarter ended March 31, 2022. As per the rules, a government panel will meet soon and notify the new rates by June 30 for the quarter beginning July 2022, which is the end of the next month and the first quarter of the year.
Current Interest Rates on Post Office Schemes
Here are the current interest rates on post office savings schemes, which have come into effect from April 1 this year.
I. Public Provident Fund: 7.1 percent
ii. National Savings Certificate: 6.8 percent
iii. Sukanya Samriddhi Yojana: 7.6 per cent
iv. Kisan Vikas Patra: 6.9 per cent
v. Savings Deposit: 4 percent
vi. 1-Year Fixed Deposit: 5.5 percent
vii. 2-Year Fixed Deposit: 5.5 percent
vii. 3-Year Fixed Deposit: 5.5 percent
viii. 5 year fixed deposit: 6.7 percent
ix. 5 Year Recurring Deposit: 5.8 percent
X. 5-Year Senior Citizen Savings Scheme: 7.4 percent
xi. 5-Year Monthly Income Account: 6.6 percent
Why will the rates of PPF, Sukanya Samriddhi Yojana increase now?
One may ask that if the government did not hike the interest rates for PPF, Sukanya Samriddhi Yojana schemes in so long, why is it likely to do so now. This is because the Reserve Bank of India The repo rates have been increased by 40 basis points in an off cycle meet to contain inflation. While this means that borrowers will have to pay higher interest on the loan, it also means that investors will get better returns. Many nationalized and private banks are now increasing their FD and RD rates, and hence the government may take a call to increase the PPF interest rates and SSY interest rates next month.
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