PPF-SSY Interest Hike Update: Learn about the likelihood of an interest rate rise on PPF to SSY small savings deposits

 PPF-SSY Interest Hike Update: Learn about the likelihood of an interest rate rise on PPF to SSY small savings deposits

PPF-SSY Interest Hike Update: Learn about the likelihood of an interest rate rise on PPF to SSY small savings deposits

Savings Plans: There are twelve different minor savings plans offered by the government, including Post Office Savings, PPF, Sukanya, Senior Citizen, and National Certificate. Most of these savings plans had consistent interest rates the last time around.

The Modi administration might decide shortly whether to raise the interest rates on modest savings plans. The Finance Ministry will examine interest rates in this respect for the fourth quarter of the 2023–2024 fiscal year, which runs from January to March. The higher rates will go into effect on January 1, 2024.

Evaluation every three months: Every three months, the government examines the interest rates offered by modest savings plans. The last time, on September 30, interest rates were only raised on two types of schemes; other plan categories remained unchanged. It is anticipated that in such a circumstance, a decision on an increase in the remaining plans may be made this time.

The government now offers twelve different kinds of modest savings programs, including Post Office Savings, PPF, Sukanya, Senior Citizen, and National Certificate. Their interest rates have not changed. Most of these savings plans had consistent interest rates the last time around. The five-year recurring deposit scheme's interest rate was the only one raised, going from 6.5 to 6.7%.

PPF has not changed in the last three years.

Prior to April 1, 2020, the nation's PPF interest rate was 7.9%. The government changed and lowered the interest rates on several savings plans during the Corona period in the April–September 2020 quarter. PPF's interest rate has been at 7.1 percent ever since. PPF remained unchanged despite several changes to interest rates in the meantime.

After almost four years, it is anticipated that the government would raise the PPF interest rate this time. Officials claim that the high return after tax in this program is the primary cause of the little rise in PPF interest rates. It comes to around 10.32% in the case of the highest tax level. Because of this, there is no change in the interest rate.

Ministry of Finance makes a decision.

Every quarter, the Finance Ministry releases rates on modest post office savings. Banks set their own FD rates depending on the Reserve Bank's repo rate, with the exception of modest savings plans. Small savings plans are designed to motivate regular people to save money. Additionally, the Senior Citizen Deposit Scheme and Monthly Income Scheme are to be used to provide a consistent source of income.

Potential growth in these projects

Current Interest Rate for the Scheme

Scheme for Savings Deposits: 4.0 percent

6.9% for a fixed deposit of one year.

Fixed deposit for five years: 7.5 percent

Recurring deposit plan for five years: 6.7%

7.7% of the National Savings Certificate Program

Scheme for Public Provident Funds: 7.1 percent

7.5% of Kisan Vikas Patra

Scheme for Sukanya Samriddhi Account: 8.0 percent