What will be the decision of the government? Interest will increase on small savings schemes like PPF, Sukanya Samriddhi, or you will get disappointed

New Delhi. Many small savings schemes are being run by the central government. Like PPF, Sukanya Samriddhi Yojana and National Savings Certificate. The interest rates on these schemes are fixed on a quarterly basis. During January to March, the government had increased the interest for some of these schemes. However, there was no change in the interest rates of Public Provident Fund (PPF) and Girl Savings Scheme ‘Sukanya Samriddhi Yojana’ at that time. Please tell that there has been no increase in the interest rate of these schemes since January 2019. According to media reports, a government official has indicated that there is no possibility of getting high returns in these schemes.

This is because the government is no longer fully in agreement with the Shyamala Gopinath Committee formula that was adopted in April 2016. Despite the rate hike on some other small savings schemes for the third and fourth quarter of 2022-23, the returns of these two schemes remained stable. A senior Finance Ministry official told The Hindu that at the moment we disagree with the formula of the Shyamala Gopinath Committee.

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what is the recommendation
For the March quarter, the government had increased the interest rate of some schemes. An increase from 20 bps to 110 bps was made by the government. Although the interest of PPF and Sukanya Samriddhi Yojana was not increased. The PPF rate for the December quarter should have been raised to 7.72% and Sukanya Samriddhi account returns to 8.22%, according to the formula set by the panel headed by former deputy governor of the Reserve Bank of India (RBI), Shyamal Gopinath.

Interest rates are reviewed every quarter
The interest rates of Small Savings Scheme are reviewed every quarter. The formula for fixing the interest rates of these schemes was given by the 2016 Shyamala Gopinath Committee. The committee suggested that the interest rates of these schemes should be 0.25-1.00% higher than the yield of government bonds of similar maturity. Right now the interest rates of government bond yield are close to 7.5%. Despite this, the interest rates of Small Savings Scheme have not been increased.

Know how much interest is being received in which scheme
You will get 7.60% on investing in Sukanya Samriddhi Yojana.
7.1% on Public Provident Fund ie PPF.
7% on National Savings Certificate (NSC)
7.2% interest is being given on investing in Kisan Vikas Patra.
At the same time, 8% interest is being received in the Senior Citizen Savings Scheme.

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Tag: ppf, PPF account, Small Savings Schemes, Small Savings Schemes, Sukanya samriddhi scheme