The rate of interest on small financial savings schemes for July-September quarter has been raised by 10-30 foundation factors and now vary from 4.0 p.c to eight.2 p.c, the finance ministry stated on June 30.
The announcement was made by the Ministry of Finance on Friday. The rates of interest on small financial savings schemes are usually reviewed each quarter by the federal government. While declaring small financial savings rates of interest for the earlier quarter, the federal government introduced as much as 70 bps rate of interest hikes for varied small saving schemes.
The rates of interest supplied by the Government on many of the small financial savings schemes, together with Post Office Fixed Deposit, are already at par with time period deposits supplied by banks.
The small financial savings rates of interest, whereas set by the federal government, are linked to market yields on G-secs with a lag and are reviewed, fastened on a quarterly foundation at a diffusion starting from 0-100 foundation factors over and above G-Sec yields of comparable maturities, as per the Reserve Bank of India.
Interest fee hikes within the final quarter
The authorities has raised the speed of curiosity on varied Small Savings Schemes for the April to June quarter. The rate of interest on the Senior Citizen Savings Scheme was hiked by 20 foundation factors, National Savings Certificate by 70 foundation factors, Kisan Vikas Patra by 30 foundation factors, and Sukanya Samriddhi Yojana by 40 foundation factors.
Interest fee hikes in January to March interval
In the January-March interval, the Centre hiked the rates of interest on a number of the small financial savings schemes. The authorities elevated the rate of interest for 1-year, 2-year, 3-year, and 5-year time period deposits. Besides this, it has additionally elevated the rate of interest for the Senior Citizens’ Savings Scheme, Monthly Income Scheme, and the National Savings Certificate.
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Updated: 30 Jun 2023, 05:46 PM IST