Small Savings Schemes: Govt Likely To Hike Interest Rates For January-March 2024

 

Even as the RBI earlier this month kept the interest rates on hold for the fifth in a row, the government is expected to revise upwards interest rates on small savings schemes like PPF, NSC, etc, on such schemes for January-March 2024 at the end of this month — December 29. An expert said that going by the G-Sec yields trend, the interest rates on small savings schemes are likely to be raised.

Sunil Sinha, principal economist and senior director (public finance) at India Ratings & Research, said, “Interest rates on small savings schemes like PPF, NSC, etc, are now market-linked and moves in tandem with 10-year G-Sec yield. Therefore, the interest rate paid on these schemes is likely to go up."

A senior banker has said the government also monitors the country’s liquidity position and inflation before deciding on the interest rates of small savings schemes.

Even as the interest rates on small savings schemes, including PPF, NSC and KVP, are reviewed every quarter,

Currently, interest rates on small savings schemes range between four per cent (post office savings deposits) and 8.2 per cent (Senior Citizens Savings Scheme).



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