Big update on Sukanya Samriddhi, PPF, did what was expected happen?

by times news cr

2024-10-01 00:55:17
New Delhi: The government has not made any change in the interest rates on small savings schemes including Sukanya Samriddhi and PPF. This decision has been taken for the third quarter of the financial year 2024-25. The government made this announcement on Monday. He said that there will be no change in the interest rates of PPF and other small savings schemes. That means, the same amount of interest will continue to be received on these schemes as before. This is the third consecutive quarter when the government has not changed the interest rates. Earlier, the interest rates of some schemes were changed in the fourth quarter of the financial year 2023-24. The Finance Ministry said in a notification, ‘In the third quarter of the financial year 2024-25 (from October 1 to December 31, 2024 ) interest rates on various small savings schemes will remain the same as the rates notified for the second quarter (from July 1 to September 30, 2024).

8.2% interest will be available on Sukanya Samriddhi

According to the notification, interest on deposits under Sukanya Samriddhi Yojana will be available at the rate of 8.2 percent as before. Whereas the interest rate on three-year fixed deposits will be 7.1 percent. Apart from this, the interest rates for PPF and Post Office Savings Deposit Scheme will also remain at 7.1 percent and four percent.

There was no change in the rates of these schemes

The interest rate on Kisan Vikas Patra will be 7.5 percent. This investment will mature in 115 months. At the same time, the interest rate on National Savings Certificate (NSC) will be 7.7 percent. Even in the October-December quarter, investors of the Post Office Monthly Income Scheme will get interest at the rate of 7.4 percent as before. The government notifies interest rates every quarter for these small savings schemes operated by post offices and banks.

There was already a fear that there would be no change in interest rates.

Experts had already expressed apprehension that the government is in no mood to increase rates in the October-December quarter. This was because the interest rates of these schemes are linked to the 10-year government bond yield. The average yield of these bonds between June and August has been 6.93%.

Actually, the interest rates of small savings schemes are decided every three months on the basis of the average government bond yield of the last three months. In 2016, the Finance Ministry had released a formula, according to which the interest rate of PPF is 0.25% more than the 10-year government bond yield.

You may also like

Leave a Comment