Sukanya Samriddhi Account: If you invest in PPF and Sukanya Samriddhi Yojana (SSY) keeping in mind the future of your family and children, then this news is for you. The Reserve Bank of India (RBI) on Friday cut the policy rate repo rate for the first time in five years.
After this, the government can cut the interest rate on small savings schemes like PPF and Sukanya Samriddhi in the next financial year. The government reviews the interest rate for small savings schemes every quarter.
Review will be done on 31st March for April-June quarter
The next review for the April-June quarter will be on March 31. In such a situation, RBI’s decision may affect the interest received on these savings schemes. However, the Finance Ministry may avoid any immediate reduction in interest rates because the effect of the new interest rate will be visible only in the coming months. Apart from this, it is common for banks to raise more deposits in the fourth quarter of the financial year. According to a government source, ‘This is the best time to invest money in savings schemes.
Interest on small savings schemes may be reduced
Experts say that the Finance Ministry can reduce the interest rate of small savings schemes any time next year. Experts say that savings schemes like PPF will still remain attractive because they offer tax benefits and the benefit of compounding. In the next financial year, the central government has estimated to raise a total of Rs 3.4 lakh crore from small savings schemes, while this year’s revised estimate was Rs 4.1 lakh crore.
7.1% interest on PPF and 8.2% on Sukanya Samriddhi
Apart from this, the government is also budgeting a return of 20,000 crores under the Mahila Samman Yojana, as this scheme is being completed in March. Currently, 7.1% interest is given to investors under PPF and 8.2% annual interest is given under Sukanya Samriddhi Yojana. In the coming months, the government may cut these rates, so it may be beneficial for investors to invest money now. Investing in these schemes also provides the benefit of exemption under Section 80C of Income Tax.
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