The common man got a New Year gift, increased interest rates on small savings schemes, 8% interest in one scheme
Raised interest rates on small savings deposit schemes including Post Office Fixed Deposit, NSC, and Senior Citizen Savings Scheme by up to 1.1 percent. This increase will be applicable from January 1. However, the interest rates of the Public Provident Fund (PPF) and Girl Child Savings Scheme ‘Sukanya Samriddhi’ have not been changed.
Highlights
- There has been no change in the interest rates of PPF and the Girl Child Savings Scheme ‘Sukanya Samriddhi’.
- National Savings Certificate (NSC) will get interested at the rate of 7 percent from January 1.
- Senior Citizens Savings Scheme will get 8 percent interest as against the existing 7.6 percent.
New Delhi. The central government has given a big gift to the common man by increasing the interest rates on 8 savings schemes. On Friday, the interest rates on Small Savings Deposit Schemes including Post Office Term Deposit, NSC, and Senior Citizen Saving Scheme were increased by up to 1.1 percent. This increase will be applicable from January 1. This increase by the government is in line with the recent hike in interest rates. However, the interest rates of the Public Provident Fund (PPF) and the Girl Child Savings Scheme ‘Sukanya Samriddhi Yojana’ have not been changed.
National Savings Certificate (NSC) will get interested at the rate of 7 percent from January 1. Now it is 6.8 percent. Similarly, the Senior Citizens Savings Scheme will get 8 percent interest as against the existing 7.6 percent. Interest rates on the Post Office Fixed Deposit Scheme for a period of one to five years will increase by 1.1 percent. In the monthly income scheme, instead of 6.7 percent, now 7.1 percent interest will be available.
No change in the interest rate on post office savings accounts
There has been no change in the interest rate available on post office savings accounts, so the account holders will get interested only at the rate of 4% per annum. There has been an increase of 1.10% in the interest rates of time deposit schemes ranging from 1 year to 3 years.
In fact, after the increase in the repo rate by the Reserve Bank of India, an increase in interest rates on all government-backed savings schemes was expected. However, the account holders of PPF and Sukanya Samriddhi schemes have been disappointed. At present, the current rate of interest on PPF is 7.1 percent. Now many banks are also offering higher interest on fixed deposit schemes as compared to PPF.
In September 2018, the interest rate on PPF was 7.4%. It increased to 8% in June 2019 but has started falling since then and now the interest rate is 7.1%. Explain that the central government revises the interest rate of the Public Provident Fund (PPF) on a quarterly basis and the interest rates of 8 small savings schemes have been changed under this.
