If you also invest money in small savings schemes like Sukanya Samriddhi Yojana (SSY), Public Provident Fund (PPF), c(NSC) and Kisan Vikas Patra (KVP), then there is good news for you.
After the huge increase in the repo rate by the Reserve Bank of India this year, it is expected that the government may increase the interest rates of small savings schemes. RBI has increased the repo rate by 225 basis points i.e. 2.25 percent in five times in the year 2022. Only last week, the central bank had increased the repo rate by 35 basis points.
The government has to revise the interest rates of small savings schemes at the end of the year 2022. The government will decide the interest rates for the January-March 2023 quarter. The purpose of small savings schemes is to encourage common people to save. There are three categories of small savings schemes – savings scheme, social security scheme and monthly earning scheme.
These are the small savings schemes
The savings scheme category includes 1-3 year time deposit and 5 year recurring deposit. Apart from this, savings certificates like National Savings Certificate (NSC) and Kisan Vikas Patra are also included in this. Social security schemes include Public Provident Fund (PPF), Sukanya Samriddhi Yojana and Senior Citizen Savings Scheme. Monthly Income Savings includes Monthly Income Plan.
Interest rates were increased last time
The interest rates of small savings schemes are revised every quarter. For the current quarter, the government had increased the interest of Kisan Vikas Patra (KVP), Senior Citizen Saving Scheme, Monthly Income Scheme and savings schemes for 2 to 3 years by 10-30 basis points i.e. from 0.10 to 0.30 percent. At the same time, there was no change in the interest rates of PPF, Savings Scheme, National Savings Certificate and Sukanya Samriddhi Yojana.
Right now this much interest is being received
4% interest is being received annually on Post Office Savings Deposit. 5.5% interest is available on 1 year time deposit and 5.7% interest on 2 year deposit. At the same time, 5.8 percent interest is currently being given on 3-year time deposits. 6.7 percent interest is being received on FD of 5 years. Investors are getting 5.8 percent interest on five-year recurring deposit (RD). Investors who have invested in National Savings Certificate (NSC) and Sukanya Samriddhi Yojana are being given interest of 6.8 percent and 7.6 percent respectively. 7.1 percent interest is being received on the money invested in PPF.
