In a recent announcement, the Center revealed the interest rates for Small Savings Schemes applicable for the December quarter. Surprisingly, there have been no changes in the interest rates for schemes like PPF, Sukanya Samriddhi, Senior Citizens Saving Scheme, and Kisan Vikas Patra. Notably, the interest rates for PPF have remained unchanged since April 2020.
Conversely, the government has decided to increase the interest rate on the five-year recurring deposit scheme by 0.20 per cent. As a result, investors can now benefit from a higher interest rate of 6.7 per cent on 5-year recurring deposits, up from the previous 6.5 per cent. All other small savings schemes will continue with their existing interest rates.
Circular Details
As outlined in a circular by the Department of Economic Affairs, the interest rates for various schemes are as follows:
– Savings deposits: 4 percent
– One-year Fixed Deposits: 6.9 percent
– Two-year and Three-year Fixed Deposits: 7 percent
– Five-year Fixed Deposits: 7.5 per cent
– Senior Citizen Saving Scheme: 8.2 per cent (unchanged from the previous quarter)
– Monthly Income Scheme: 7.4 percent
– National Savings Certificate: 7.7 percent
– PPF: 7.1 per cent (no increase, effective until December 2023)
– Kisan Vikas Patra: 7.5 per cent (maturity in 115 months)
– Sukanya Samriddhi Account: 8 per cent (interest rate unchanged)
This announcement has left PPF investors surprised, as they were expecting a change in interest rates.
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