Govt raises interest on small savings; Sukanya Samriddhi, SCSS up, PPF remains unchanged

/1 min read

ADVERTISEMENT

Sukanya Samriddhi Yojana will fetch a return of 8% in Q1 FY24, while interest on Senior Citizens Savings Scheme has been increased to 8.2%.
Govt raises interest on small savings; Sukanya Samriddhi, SCSS up, PPF remains unchanged
The rate of PPF scheme remains unchanged at 7.1%. Credits: Sanjay Rawat

The central government on Friday increased the interest rate on a number of small savings schemes for the first quarter of 2023-24 (April-June). The key schemes that will fetch higher returns to the investors are Senior Citizens Savings Scheme (SCSS), Monthly Income Scheme (MIS), National Savings Scheme, Kisan Vikas Patra and Sukanya Samriddhi Yojana.

The rate of Public Provident Fund (PPF) scheme remains unchanged at 7.1%. The rate of interest on time deposit of one to five years has also been increased.

Sukanya Samriddhi Yojana will fetch a return of 8% in April-June period of the current fiscal, compared with 7.6%. The scheme, backed by the central government is targeted at the parents of girl child, matures after twenty one years of inception. The premium payment period in the scheme is of fifteen years.

Fortune India Latest Edition is Out Now!

Read Now

Similarly the interest on Senior Citizens Savings Scheme has been increased to 8.2% compared with 8%. Also, for the June quarter of the current fiscal, the National Savings Certificate will fetch 7.7% compared with 7%. The rate of interest on monthly income scheme has been increased to 7.4% from 7.1%.

The interest on PPF remains unchanged. It may be noted that while the rate of interest on small savings had gone down in line with the low benchmark rates in the wake of the Covid-19 pandemic in the last two years, the rate of return on PPF was not reduced. In fact, the government announced lowering rate on PPF to 6.4% in 2021, but recalled the decision overnight.  

Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.