Small Savings Schemes: Government may cut interest rates of Small Savings Scheme. From July 1, those investing in small savings schemes will get less profit.
Those who invest in the Small Savings Schemes of the Central Government may get a shock. It is believed that the government can cut the small savings scheme interest rates. From July 1, those investing in small savings schemes will get less profit. Currently, small savings schemes get interest ranging from 4% to 7.6%. The rate of interest on small savings schemes is fixed every three months i.e. quarterly basis. The Finance Ministry decides and notifies these interest rates.
The government has not made any change in interest rates for the April-June quarter. Explain that on 31 March, the government announced a reduction in the interest rate on small savings schemes from the new financial year i.e. 1 April. But the very next day, the Finance Ministry withdrew the decision to reduce the interest rates on the small savings scheme.
RBI in favor of cut in interest rates
Banks and Indians in favor of cutting interest rates of small savings schemes like Sukanya Samriddhi Account (SSA), National Savings Certificate (NSC), Public Provident Fund (PPF), Monthly Income Scheme (MIS) and Senior Citizen Savings Scheme (SCSS) The Reserve Bank (RBI) is both. It is believed that by cutting interest rates, the cost of borrowing of the government will be reduced.
How much interest is getting now
- Post Office Saving Account – 4%
- 5 Year Post Office Recurring Deposit Account (RD) – 5.8%
- National Saving Time Deposit Account (TD) – On
1 Year Deposit – 5.50% On
2 Year Deposit – 5.50 Percent on
3-year deposit – 5.50 per cent on
5-year deposit – 6.70 per cent - National Savings Monthly Income Account (MIS) – 6 .6%
- Senior Citizens Savings Scheme (SCSS) – 7.4%
- Public Provident Fund Account (PPF) – 7.1%
- Sukanya Samriddhi Account (SSA) – 7.6 percent
- National Savings Certificate (NSC) – 6.8 percent
- Kisan Vikas Patra (KVP) – 6.9 percent
Since August 2019, the RBI has cut the repo rate by 1.75 percent. Whereas since then these schemes were reduced by 80–100 basis points.
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