Small Saving Rate Hike: On March 31, 2023, the central government will once again review the interest rates of small savings schemes. And it is believed that the government can again give a gift to the investors who invest in small finance schemes. The Finance Ministry will review the interest rates of savings schemes for the first quarter of the financial year 2023-24 from April to June, in which it can again be announced to increase the interest rates on these schemes.
Last time the government had decided to increase interest rates on small savings schemes from 20 to 110 basis points on 30 December 2022. However, there was no change in the interest rates offered on PPF Sukanya Samridhi Yojana. But after that, on 8 February 2023, after the meeting of the Monetary Policy Committee, the RBI increased the rate by 25 basis points. Now the repo rate has become 6.50 percent. The next monetary policy meeting of RBI is from 3 to 6 April. After going to the level of 6.52 percent retail inflation for the month of January, RBI may increase the repo rate again in April. Due to which the interest rate on small savings schemes is expected to increase.
On December 30, the government has released Kisan Vikas Patra, Post Office Deposit Schemes, NSC (NSC) and Senior Citizen Savings for the fourth quarter of the financial year 2022-23 from January to March. The scheme (Senior Citizen Saving Schemes) was extended. But this time the interest rates of PPF, Sukanya Samriddhi Yojana can also be increased. At present, 7.1 percent interest is available on Public Provident Fund (PPF), 7.6 percent on Sukanya Samridhi Yojna.
The basis for increasing interest rates on small savings schemes is because Finance Minister Nirmala Sitharaman has launched the Mahila Samman Deposit Scheme in the budget, in which 7.50 percent interest is being received annually on deposits for two years. The interest offered on small savings schemes is less than this. Hence interest rates are expected to rise.
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