Experts believe that both financial and monetary support is needed to regain the momentum of growth. The reduction in interest of small savings schemes will reduce the cost of borrowing of the government, which will support the economy.
New Delhi. If you have also invested in small savings schemes like PPF, National Savings Certificates or Sukanya Samriddhi, then this news may bother you a bit. This is because it is believed that the central government is planning to cut the interest rates of these small savings schemes. However, there is no confirmation about this from the government side yet. But it is believed that a decision can be taken in the meeting to be held on June 30, if this happens, then from July 1, the interest money will be reduced in small savings schemes.
So the government can take the decision
Experts believe that both financial and monetary support is needed to regain the momentum of growth. The reduction in interest of small savings schemes will reduce the cost of borrowing of the government, which will support the economy. Both the Reserve Bank and the banks are in favor of cutting interest rates. Let us tell you that before the assembly elections of 5 states, the interest rates of small savings schemes were cut on March 31, but the very next day, Finance Minister Nirmala Sitharaman withdrew this decision, calling it a mistake. The government may have withdrawn this decision in view of the assembly elections, but now the government has no such compulsion. The government fixes the interest rates of small savings schemes every quarter. June 30 is the next review date. If rates are cut, small investors will suffer a lot.
The cut was made in March, then the decision was taken back
Earlier, before the assembly elections of 5 states, the interest rates of small savings schemes were cut on March 31, but the very next day, Finance Minister Nirmala Sitharaman withdrew this decision, calling it a mistake. The government fixes the interest rates of small savings schemes every quarter. June 30 is the next review date. It is being claimed in media reports that the notification can be issued again from July. If rates are cut, small investors will suffer a lot.
Now you get so much interest in these schemes
At present, 7.6% interest is being available on Sukanya Samriddhi Scheme. While 7.4% on Senior Citizen Saving Scheme, 7.1% on Public Provident Fund, 6.9% on Kisan Vikas Patra, 6.8% on National Saving Certificate and 6.6% on Monthly Income Account. The interest rates on small schemes are reviewed every quarter. The review of the first quarter of this current financial year will be done in June.
