Government Keeps Interest Rates Unchanged for Small Savings Schemes in October-December Quarter
The central government has decided to keep the interest rates unchanged for various small savings schemes for the October-December quarter, according to an official notification from the Ministry of Finance.
Public Provident Fund (PPF)
The interest rate for the Public Provident Fund (PPF) will remain at 7.1%. This scheme is popular for its tax benefits and long-term savings potential.
Senior Citizen Savings Scheme (SCSS)
The Senior Citizen Savings Scheme (SCSS) will continue to offer an interest rate of 8.2%. This scheme is designed to provide financial security to senior citizens with higher returns.
Sukanya Samriddhi Yojana
Deposits under the Sukanya Samriddhi Yojana will maintain an interest rate of 8.2%. This scheme supports savings for the education and marriage expenses of girl children and is part of the ‘Beti Bachao Beti Padhao’ initiative.
National Savings Certificate (NSC)
The National Savings Certificate (NSC) will keep its interest rate at 7.7%. This fixed-income investment plan is considered secure with moderate returns.
Post Office Monthly Income Scheme (PO-MIS)
The Post Office Monthly Income Scheme (PO-MIS) will offer an interest rate of 7.4%, providing regular monthly income to investors.
Kisan Vikas Patra (KVP)
The Kisan Vikas Patra (KVP) will continue to provide an interest rate of 7.5%. This scheme is designed to double the investment over a specific period.
5-Year Recurring Deposit (RD)
The 5-Year Recurring Deposit (RD) scheme will offer an interest rate of 6.7%, allowing investors to deposit a fixed amount every month.
These small savings schemes offer guaranteed returns at regular intervals, compounded monthly, quarterly, or annually. The interest rates are determined based on the yields on government bonds, as suggested by the Shyamala Gopinath Committee.
Doubts Revealed
Interest Rates -: Interest rates are the percentage of money you earn on savings or pay on loans. For example, if you save Rs. 100 with a 7% interest rate, you get Rs. 7 extra after a year.
Small Savings Schemes -: These are savings plans offered by the government to help people save money. Examples include PPF, SCSS, and Sukanya Samriddhi Yojana.
October-December Quarter -: This means the three months from October to December. A quarter is one-fourth of a year.
Central Government -: The central government is the main government of India that makes decisions for the whole country.
Public Provident Fund (PPF) -: PPF is a savings scheme where you can save money and earn interest. It is safe and gives good returns over a long time.
Senior Citizen Savings Scheme (SCSS) -: SCSS is a savings plan for people who are 60 years or older. It helps them save money and earn interest after retirement.
Sukanya Samriddhi Yojana -: This is a savings scheme for girls. Parents can save money for their daughter’s future, like her education or marriage.
National Savings Certificate (NSC) -: NSC is a savings bond where you invest money and get a fixed interest after a few years. It is safe and backed by the government.
Post Office Monthly Income Scheme (PO-MIS) -: PO-MIS is a plan where you invest money and get a fixed amount every month as interest. It is offered by the post office.
Kisan Vikas Patra (KVP) -: KVP is a savings scheme where your money doubles in a fixed number of years. It is mainly for farmers but anyone can invest.
5-Year Recurring Deposit (RD) -: RD is a savings plan where you deposit a fixed amount every month for 5 years and earn interest on it.