Interest on schemes like PPF-Sukanya will increase by the end of June! There has been no change for two years, what do experts say?


New Delhi. There is good news for investors investing in small savings schemes like PPF-Sukanya. After the increase in other interest rates including FD, repo rate, economists predict that now the interest on government savings schemes will also increase.

In fact, there has been a big increase in the yield on government securities of various maturities. The interest rates of the government’s small savings schemes are also linked to these securities. In such a situation, there is every possibility that on June 30, the government will increase the interest rates of these savings schemes for the next quarter. There has been no change in the interest rates of these schemes for the last two years under the pressure of the pandemic. By the way, the government changes their interest rates every quarter.

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Investment will increase in these schemes
Rating agency ICRA’s Chief Economist Aditi Nair says that due to the increase in interest rates on small savings schemes, senior citizens, farmers as well as Sukanya investors who open the names of girls will also benefit. Along with this, investment in these schemes will also increase. Nair said, this will also help in curbing the borrowing of the debt market and will also reduce the pressure on the bond market. Not only this, the rising yield of government securities can also be stopped. He estimated that the total fiscal deficit of the government could be less than Rs 1 lakh crore in the current financial year.

Benefits available on these savings schemes
If the government increased the interest rates on small savings schemes at the end of this month, then those investing in about half a dozen schemes will get the benefit. This includes schemes like Public Provident Fund i.e. PPF, Recurring Deposit (RD) of 1 to 3 years and 5 years, Varishtha Nagrik Vaya Vandana Yojana, Sukanya Samriddhi Yojana, National Saving Certificate (NSC), Senior Citizen Saving Scheme and Kisan Vikas Patra. .

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Interest on government securities has become one and a half times
In the recent past, after increasing pressure on the bond market and increasing the repo rate, the yield on government securities has also increased by about one and a half times. The interest rate of securities was from 3.5 percent to 5.69 percent from September to November 2021, which increased from 3.88 percent to 6 percent from December 2021 to February 2022. After this, its return increased from 5.26 percent to 6.79 percent from March to May 2022.

Tags: PPF account, Small Savings Schemes, Sukanya Samriddhi Scheme


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