Investors hopeful of rate hike in PPF, SSY schemes
If you invest in small savings schemes of post office including PPF, Sukanya Samriddhi Yojana, then this news concerns you. You can get big returns on your hard earned money and investments. After two days i.e. on Friday, December 30, 2022, the central government can announce an increase in the interest rates of small savings schemes.
Announcement on 30 December
The Finance Ministry will review the interest rates of small savings schemes for the fourth quarter of 2022-23 from January to March, in which it is believed that an increase in interest rates can be announced on savings schemes like PPF, Sukanya Samriddhi Yojana and NSC . Interest rates can also increase on other savings schemes of the post office. It is believed that the Finance Ministry may announce an increase in interest rates by 0.50 basis points on all schemes of small savings schemes. The government’s 10-year bond yield has gone up from 6.04 per cent to above 7.25 per cent in 12 months. It is expected that the interest rate on PPF, Sukanya Samriddhi Yojana, Senior Citizen Saving Scheme can be increased by 50 basis points from the current level.
Why interest rates can increase
RBI has announced the increase in the repo rate for the fifth consecutive time on December 8, 2022. In 2022, the repo rate has been increased from 4 percent to 6.25 percent. But the government has not increased the interest rates of many small savings schemes. There has been no change in the interest rates of PPF, Sukanya Samriddhi Yojana and NSC. Currently, 7.1 percent interest on Public Provident Fund, 6.8 percent on NSC i.e. National Savings Certificate and 7.6 percent interest is being given on Sukanya Samriddhi Yojana. After increasing the repo rate by 2.25 percent, the interest rates of these schemes can be increased by the government. Considering these savings schemes as safe, many people invest in them.
Interest rates were increased on these small savings schemes
In the third quarter only the interest rate of Kisan Vikas Patra was increased from 6.9 per cent to 7 per cent but the maturity period was reduced from 124 months to 123 months. The interest rate on Senior Citizen Savings Scheme was increased from 7.4 per cent to 7.6 per cent. But there was no change in the interest rates of PPF, Sukanya Samriddhi Yojana and NSC.
