Interest Rate on Small Savings Plan: Today, the Modi administration will choose the interest rate on the PPF. Will it rise?

 Interest Rate on Small Savings Plan: Today, the Modi administration will choose the interest rate on the PPF. Will it rise?

Interest Rate on Small Savings Plan: Today, the Modi administration will choose the interest rate on the PPF. Will it rise?

Small Saving Interest Rate: The RBI had held interest rates steady for the seventh time in a row earlier this month. The government will change the interest rates on modest savings plans, such as PPF and NSC, today on Friday, for the period of January through March 2024. It is anticipated that interest rates would rise by the government.

Small Saving Interest Rate: The RBI had held interest rates steady for the seventh time in a row earlier this month. The government will change the interest rates on modest savings plans, such as PPF and NSC, today on Friday, for the period of January through March 2024. It is anticipated that interest rates would rise by the government. Interest rates on market-linked 10-year G-Sec yields are a determining factor for modest savings plans such as PPF, NSC, and others. For this reason, a rise in the interest rates given on these programs is anticipated.

in September–November 2023, which corresponds to the January–March 2024 Small Savings Scheme rates. There has been a 10 basis point rise in the yield on 5-year government bonds. In contrast, there has been a 15 basis point rise in the yield on 10-year bonds. One tenth of a percentage point is equal to one basis point.

Before setting the interest rates for modest savings plans, the government also monitors inflation and the nation's liquidity status. Nonetheless, every quarter, interest rates on modest savings plans like KVP, NSC, and PPF are examined. Small savings plans provide interest rates ranging from 4% (Post Office Savings Deposit) to 8.2% (Senior Citizen Savings Scheme).

These are the interest rates that modest savings plans now provide.

Post Office FD for a year: 6.9%

Post office FD for two years: 7%

Post office FD for three years: 7%

Post office FD for five years: 7.5%

Five-year RD (Post Office RD): 6.7% (before to this, interest was 6.5%).

7.7% of all National Savings Certificates (NSCs)

7.5% of the population is Kisan Vikas Patra (KVP) (mature in 115 months).

PPF: 7.1%

Sukanya Samridhi Account: 8.0 percent (Sukanya Samridhi Yojana)

Senior Citizen Savings Program: 8.2%

7.4% is the monthly income scheme (Post Office Monthly Scheme).