After the announcement of the provident fund interest rates, it is now the turn to fix the interest rates of the Small Saving Scheme. Now even small savings schemes can fix a lower interest. In the coming quarter, the government may cut the interest rates of saving schemes. According to sources, the interest rates of small savings schemes for October-December 2020 are to be revised. The Finance Ministry has to decide on the interest rates of Small Saving Schemes on 30 September 2020.
It has also been claimed in media reports that interest rates on the small saving scheme can be reduced during the October-December quarter. The way the RBI has reduced interest rates recently. At the same time, the bond yield is at lower levels. In such a situation, the possibility of reducing interest rates is being expressed. Since 2016, the central government reviews the small savings scheme on a quarterly basis and decides the interest rates. At the same time, earlier interest rates were changed on an annual basis.
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Just how much interest on small savings
>> National Savings Recurring Deposit Account: 5.8%
>> National Savings Monthly Income Account Account: 6.6%
>> Kisan Vikas Patra (Kisan Vikas Patra): 6.9%
>> Public Provident Fund: 7.1%
>> National Savings Certificate: 6.8%
>> Sukanya Samriddhi Scheme: 7.6%
>> Senior Citizens Savings Scheme: 7.4%
Which schemes will reduce interest
According to sources, the government wants to reduce the interest of small savings schemes so that the difference in interest rate between repo rate and schemes can be reduced. Among these, Public Provident Fund (PPF), National Savings Certificate (NSC), Senior Citizen Savings Savings (SCSS), Sukanya Samriddhi Yojana (SSY), Kisan Vikas Patra (KVP) can cut interest rates.
