The Central Government of India has recently announced an increase in the interest rates of Small Savings Schemes, bringing good news to those looking to invest their money and grow their savings. This move comes as a relief to many individuals and families who have been struggling with financial challenges amidst the ongoing pandemic.
The government has increased the interest rates on various savings schemes such as Sukanya Samriddhi Yojana, National Savings Certificate (NSC), Kisan Vikas Patra (KVP), Post Office Deposit Schemes, and Senior Citizen Saving Schemes. The interest rates on time deposits of one, two, three, and five years have also been hiked.
The rate hikes range from 10 to 70 basis points, which means that investors can now earn higher returns on their savings. However, it is important to note that the interest rates on Public Provident Fund (PPF) have not been changed.
Boost Your Savings with the Latest Interest Rate Hikes in Small Savings Schemes
Sukanya Samriddhi Yojana
The interest rate for Sukanya Samriddhi Yojana has been increased from 7.6 percent to 8 percent. This scheme is an excellent investment option for parents who want to secure their daughter’s future by building a substantial corpus for her education or marriage. The scheme provides a tax benefit of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act, making it an attractive investment option for many.
National Savings Certificate
The interest rate on National Savings Certificate (NSC) has been hiked from 6.8 percent to 6.9 percent. NSC is a low-risk investment option that provides guaranteed returns to investors. The scheme comes with a lock-in period of five years, and the interest earned is taxable.
Kisan Vikas Patra
Kisan Vikas Patra (KVP) is a savings scheme that doubles the investment amount in a set number of years. The interest rate on KVP has been increased from 7.2 percent to 7.5 percent. The scheme is an attractive option for individuals who want to invest in a low-risk savings scheme and earn guaranteed returns.
Post Office Deposit Schemes
The government has increased the interest rates on post office deposit schemes as well. The interest rate on the monthly income account has been increased from 7.1 percent to 7.4 percent. This scheme is ideal for retirees who want to earn a regular monthly income from their savings. The scheme comes with a lock-in period of five years, and the interest earned is taxable.
Senior Citizen Saving Schemes
The interest rate on Senior Citizen Saving Schemes has been increased from 8 percent to 8.2 percent. This scheme is specially designed for senior citizens and provides higher returns than most other savings schemes. The scheme comes with a lock-in period of five years, and the interest earned is taxable.
The interest rates on time deposits of one, two, three, and five years have been hiked as well. The interest rate on one-year time deposits has been increased from 6.6 percent to 6.8 percent, while the interest rate on two-year time deposits has been increased from 6.8 percent to 6.9 percent. The interest rate on three-year time deposits has been increased from 6.9 percent to 7.0 percent, and the interest rate on five-year time deposits has been increased from 7 percent to 7.5 percent.
The latest interest rate hikes in Small Savings Schemes have provided a much-needed boost to individuals and families looking to grow their savings. These schemes offer guaranteed returns and are considered to be low-risk investment options. It is important to consider