In a significant move, the Indian government has announced that there will be no changes in the interest rates of small saving schemes. This decision covers popular schemes like the Public Provident Fund (PPF), Sukanya Samriddhi Yojana, and Senior Citizens Savings Scheme, maintaining the existing interest rates from January to March.
The decision was disclosed by the Ministry of Finance, indicating that there has been no influence from the recently concluded Lok Sabha elections. The government had previously issued notifications specifying the interest rates for these schemes for the first quarter of the fiscal year, starting from April to June.
Despite other recent economic decisions, such as the 4% increase in dearness allowance for central employees, subsidy adjustments in the Ujjwala Yojana, a subsidy of ₹100 on regular LPG cylinders, and reductions in CNG prices, the interest rates on small saving schemes remain unchanged.
Interest Rates for Various Schemes
The decision ensures that the interest rates applicable during January to March will remain in effect until June 30. Here are the interest rates for some popular small saving schemes:
- Public Provident Fund (PPF): 7.1%
- Sukanya Samriddhi Yojana: 8.2%
- Senior Citizens Savings Scheme: 8.2%
- National Savings Certificate (NSC): 7.7%
- Kisan Vikas Patra (KVP): 7.5%
- Monthly Income Scheme: 7.4%
This development may disappoint the middle class, as these schemes have been widely used and beneficial for them. However, with the decision to maintain the current interest rates until the end of June, investors can continue to benefit from these schemes without any alterations.
While there have been several economic decisions made by the government recently, the stability in small saving schemes’ interest rates brings assurance and continuity for investors in these popular savings instruments.