The Finance Ministry reviews the interest rates of the schemes on a quarterly basis. In this series, the interest rate for the October-December period will be reviewed and a decision will be taken on September 30.
Small savings scheme: The decision on the interest rate of small savings schemes like Public Provident Fund (PPF) and Sukanya Samriddhi is going to be taken on 30th September. Actually, the government reviews interest rates on a quarterly basis. In this series, the interest rate for the October-December period will be reviewed on September 30 and a decision will be taken on it.
What will happen to PPF: It is possible that this time also there will be no change in the interest rates of PPF. Let us tell you that the interest rates on PPF have not been revised since April 2020. Currently, investors get interest at the rate of 7.10 percent on PPF deposits. According to Amit Gupta, MD of SAG Infotech, the Finance Ministry can keep the interest rate on PPF at 7.10 percent only for the October-November quarter. The interest rates applicable for every quarter are credited to the investor’s PPF account at the end of the financial year. A person can deposit up to ₹1.5 lakh in a year in a PPF account. You can claim tax exemption on this annual deposit amount under Section 80C. Apart from this, PPF maturity amount is also tax free.
How much increase in September quarter
Let us inform that for the July-September 2023 quarter, interest rates on small savings schemes were increased by 30 basis points. This amendment was specifically for 1-year and 2-year fixed deposits and 5-year recurring deposits.
April quarter situation
There was an increase of up to 70 basis points during the April-June quarter. The interest rate on National Savings Certificate (NSC) was increased the most. Its interest rate is 7.7%, which was earlier 7%. The interest on Sukanya Samriddhi, the popular savings scheme for girls, was increased from 7.6% to 8%. The interest rate for Senior Citizen Savings Scheme is 8.2%, for Kisan Vikas Patra is 7.6%.
