PPF Interest Rate: Repo rate has been increased by 1.40 percent by RBI in three times. After this, various banks have increased the interest rate of FD and RD.
PPF Interest Rate: If you also invest in small savings schemes PPF, Sukanya Samriddhi Yojana, NPS or Kisan Vikas Patra etc. then this news will make you happy. According to sources, the government is preparing to make changes in the interest rate of SSY and PPF in the September quarter. Its direct benefit will be to the investors who invest in the Small Savings Scheme.
1.40 percent increase in the repo rate
With the ongoing inflation at a record level, the interest rate of banks is expected to get more interest than before, amid the increase in the interest rate. The changes made by the government will be implemented from October 1. The repo rate has been increased by 1.40 percent by RBI in three times. After this, various banks have increased the interest rate of FD and RD.
Interest rates to be reviewed
On 30th September Interest rates on small savings scheme are to be reviewed on 30th September. This review is to be held for the quarter October to December 2022. This time the interest rate on savings schemes from the government is expected to increase. There has been no change in the interest rate on small savings schemes for a long time.
Why will the interest rate change?
Both the banks and the RBI are in favor of increasing the interest on the government’s small savings schemes. RBI has increased the repo rate thrice since May and it is currently running at 5.4%. It is expected to increase by 25 basis points in the coming time. But no changes were made on the savings schemes by the government. In such a situation, there is every possibility that the returns on PPF and Sukanya Samriddhi Yojana will also increase.
Interest rates are revised every quarter
The interest on small savings schemes is reviewed by the government every three months. During this review, a decision is taken whether to increase, decrease or keep the interest rate constant. These interest rates are decided by the Finance Ministry.
Know how much interest is available on which savings
At present, interest is earned on PPF at the rate of 7.1% per annum. At the same time, 7.6% annual return is given to those who invest in Sukanya Samriddhi Yojana. Similarly, if you talk about National Savings Recurring Deposits Account, then it has a return of 5.8%. The interest rate on Kisan Vikas Patra is 6.9 percent.
