It is expected that the government will hike interest rates for seven types small savings schemes. Check the list.
New Delhi: A week after RBI’s move to increase repo rate by 35 basis points, a number media reports are speculating that government might take a call on hiking interest rates on small saving schemes like Public Provident Fund (PPF), Sukanya Samriddhi Scheme, Senior Citizen scheme, National Saving Certificates (NSC) and Kisan Vikas Patra to name a few. The government runs 12 small saving schemes through the post office department.
The finance ministry may take a call for the interest rates of January-March quarter, during which it may hike rates of the small savings schemes.
On September 30 this year, government had hiked interest rates on senior citizens savings scheme, Kisan Vikas Patra (KVP), monthly income account scheme, and time deposits. However, interest rates on other small savings scheme like Public Provident Fund (PPF), National Savings Certificate (NSC), Sukanya Samriddhi Yojana were kept unchanged.
It is expected that the government will hike interest rates for the following small savings schemes:
Savings Deposit Scheme
1 Year Fixed Deposit Scheme
5 year Fixed Deposit Scheme
5 Year Recurring Deposit Scheme
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National Savings Certificate Scheme
Public Provident Fund Scheme
Sukanya Samriddhi Account Scheme
On December 7, the Reserve Bank of India hiked the key repo rate by 35 basis points to 6.25 per cent, the fifth straight increase since May. In all, the RBI has raised the benchmark rate by 2.25 per cent since May this year. Consequently, the standing deposit facility (SDF) rate is adjusted to 6 per cent and the marginal standing facility (MSF) rate and bank rate to 6.50 per cent.
Other banks have also followed suit after the RBI raised the key interest rate by 35 basis points.
