Will Narendra Modi govt raise interest rates on small savings schemes that are due for revision at the end of this month? The interest rates of various other small savings schemes including Recurring Deposit (RD), Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Mahila Samman Saving Certificate, Kisan Vikas Patra, National Savings Certificate. (NSC) and Senior Citizen Savings Scheme (SCSS) are due for revision. The government decides the interest rates on small savings schemes every quarter. The interest rates of small savings schemes are due for revision on 30 December 2023. People are wondering whether the govt will hike the interest rate of PPF as they have remained unchanged since April 2020.
The government hiked the interest rate on the five-year recurring deposit scheme for the December quarter and retained the rates for all other small savings schemes.
Interest rates on small savings schemes
PPF – 7.1%
SCSS – 8.2%
Sukanya Yojana – 8.0%
NSC – 7.7%
PO-Monthly Income Scheme – 7.4%
Kisan Vikas Patra – 7.5%
1-Year Deposit – 6.9%
2-Year Deposit – 7.0%
3-Year Deposit – 7.0%
5-Year Deposit – 7.5%
5-Year RD – 6.7%
Benefits of investing in small savings scheme
1)Small savings schеmе usually providе stablе and prеdictablе rеturns. This is particularly bеnеficial for consеrvativе invеstors .
2) Small savings schemes are government-backed and are virtually risk-free.
3) Investors can enjoy assured returns on their investment.
4) The investment amount in these savings schemes can range from ₹250 to ₹1,000,
5)These small savings schemes can be viable options to diversify your portfolio
6) Under Section 80C of the Income Tax Act, individuals can claim deductions of up to Rs. 1.5 lakh per year from their taxable income by investing in PPF, SCSS, NSC, SSY, and the 5-Year Post Office Time Deposit Scheme.
Meanwhile, as per a gazette notification dated November 9, the government has relaxed the norms for various small savings schemes– PPF, Senior Citizen’s Savings Scheme , and Time Deposit Scheme.
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Published: 29 Dec 2023, 02:02 PM IST