Those investing in small savings schemes or post office schemes may get good news soon. The government will fix the interest rates on these schemes for the next quarter at the end of this month. This may change the interest rates of schemes like PPF, Sukanya Samriddhi Yojana, Post Office RD, Mahila Samriddhi Saving Certificate, Kisan Vikas Patra, National Savings Certificate and Senior Citizen Savings Scheme. The government fixes the interest rates of these schemes for every quarter. The new interest rates will be applicable from July to September 2024. Now the question is whether the Modi 3.0 government will increase the interest rates of these small savings schemes?
There was no change in the April-June quarter
The government kept the interest rates of these schemes unchanged in the April-June quarter. If the interest rate increases, it will be a sign of encouraging domestic savings, which has been sluggish for the last few years. However, the government will also see how much capacity it has to manage higher interest payments. According to experts, the global situation will also have to be looked at. Because most countries still have relatively low interest rates on deposits. If India increases interest rates significantly, then it may cause losses to the country at the international level.
Decision will have to be taken keeping in view the macroeconomic scenario
According to experts, the government can adjust the rates on long term investments to promote savings without putting unnecessary pressure on the treasury. PF, ESAF and small savings schemes are sensitive political issues for the government. Where there is pressure to increase rates to benefit millions of small savers. Especially in times of inflation. Also, the government will have to look at these decisions in terms of the macroeconomic scenario. This also includes the monetary policy of RBI and the deposit rates of banks.
What are the interest rates now?
PPF – The interest rate on PPF is 7.1%.
SCSS – Senior Citizen Savings Scheme (SCSS) offers an interest rate of 8.2%.
Sukanya Yojana – Deposits under Sukanya Samriddhi Yojana offer an interest rate of 8.2%.
NSC – NSC stands for National Savings Certificate, which offers an interest rate of 7.7%.
Post Office-Monthly Income Scheme – Post Office Monthly Income Scheme offers an interest rate of 7.4%.
Kisan Vikas Patra – Kisan Vikas Patra (KVP) is a government-backed savings scheme, which currently offers an interest rate of 7.5%.
1-Year Deposit – The interest rate on 1-year deposit is 6.9%.
2-Year Deposit – The interest rate for 2-year deposit is 7.0%.
3-Year Deposit – The interest rate for 3-year deposit is 7.1%.
5-Year Deposit – The interest rate on 5-year deposit is 7.5%.
5-Year RD – The interest rate on 5-year RD scheme is 6.7%.
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