Millions of Indians rely on the benefits offered by the Government savings schemes as being low-risk investors. Post office savings schemes are the best investment source for them to earn high returns at low risk. These schemes cover the benefits for the citizens of every age group, they are highly reliable, regulated by Government, and pay high returns as per investments made even more than the banks.
Interest Rates Hike For Small Savings Schemes
It has been a long time since the Government has hiked the interest rates offered on these Small Savings Scheme after reviewing. But with this article, we are going to deliver news for all the investors of these schemes to be amazed. For the investors of “National Savings Certificate, Sukanya Samriddhi Yojana, Senior Citizens Savings Scheme or Public Provident Fund (PPF)” there is encouraging news that the government may consider changes in interest rates of these schemes in June, as per media reports.
No Interest Rate Hike Seen Recently
As I have said in the above para, these small savings schemes or post office schemes haven’t seen an interest rate hike for a long time now, especially in the post-pandemic period in which the country’s economic condition has tanked terribly. In the quarterly review of this year from April to June, the Centre has decided to keep the interest rates unchanged on the savings schemes including Public Provident Fund (PPF) and Sukanya Samriddhi Yojana. However, as per the norms, there is a quarterly government panel meeting to take place soon to decide the interest rates for the first quarter of this fiscal year which is going to be from July 2022.
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From Now On Banks May Ask For PAN, Aadhaar To Withdraw Or Deposit
Why The Interest Rate Hike For The Small Savings Schemes Now?
Well, these thoughts might be coming to your mind, that is why the Government will increase the rate now and what if this time again the rates will remain the same as before. The reason is the 40 basis points hike by the Reserve Bank of India on its repo rates to control surging inflation. This hike has resulted in two outcomes: first, the banks will have to pay more interest to the regulator on loans and second the investors will get better returns on their investments. Several private and public section financial institutions have hiked their FD and RD rates. Thus, the Government is likely to take action in favour of the investors by increasing the return rate on small savings schemes.
