If you have invested in savings scheme like NSC, PPF and Sukanya Samridhi Yojna (SSY) then there could be good news round the corner for you. These schemes are likely to get tremendous returns from July 1, 2022.From July 1, the central government may increase the interest rates on its savings schemes like PPF and Sukanya Samriddhi.
Before the start of every quarter, the Finance Ministry reviews and announces the interest rates of government savings schemes. In such a situation, it is expected that from July 1, 2022, the Finance Ministry may announce to increase the interest rates on the government’s savings schemes from 0.50 to 0.75 percent.
Why Interest rates are expected to increase?
After the RBI increased the repo rate by 0.90 percent, many banks have increased the interest rates on deposits. In such a situation, it is expected that from July 1, the interest rates on these government savings schemes can also be increased. At present, Public Provident Fund (PPF) gets 7.1 percent annual interest rate, while NSC is getting 6.8 percent annual interest.
At present, 7.6 percent interest is available on Sukanya Samridhi Yojana and 7.4 percent on Senior Citizen Tax Saving Scheme. Apart from this, 6.9 percent interest is being given on Kisan Vikas Patra. Now people are hopeful that the government can increase the interest on these schemes from July.
No change since April 2020
There has been no change in the interest rates of small savings schemes since the first quarter of the year 2020-21. Earlier, the Finance Ministry said in a notification, the interest rate on various small savings schemes for the first quarter of the financial year 2022-23, starting from April 1, 2022, and ending on June 30, 2022, for the fourth quarter (January) will remain unchanged from the current rates applicable. The interest rates for small savings schemes are revised on a quarterly basis.