Recently, the Employees’ Provident Fund Organization (EPFO) had drastically cut the interest rate on EPF. After EPF, now there is a possibility of scissors on the interest rates of small savings schemes.
If this happens, then those who invest in schemes like Sukanya Samriddhi Yojana, Public Provident Fund ie PPF and Kisan Vikas Patra, which come under the purview of small savings, will get a big blow.
Why there is apprehension: RBI in its “State of the Economy” report has said that the current interest rates of small savings schemes are 42-168 bps higher on a comparative basis. Let us tell you that the Government of India had reviewed the interest rates on Small Savings Schemes on December 31, 2021 and left it unchanged for the seventh consecutive quarter. It is expected that the government may review the interest rates on small savings schemes for the first quarter of 2022-23 on March 31.
Rate of interest on Small Savings Schemes: Interest is being given on PPF at the rate of 7.1 per cent while on Sukanya Samriddhi Account the interest rate is 7.6 per cent per annum. Apart from this, the interest rate of Senior Citizen Savings Scheme (SCSS) is 7.4 percent per annum. Among other small savings schemes, post office savings account is getting an interest rate of 4 per cent per annum.
Also the 5-year Post Office Recurring Deposit Account (RD) has an interest rate of 5.8 per cent per annum. Post Office Monthly Income Scheme Account (MIS) with an interest rate of 6.6 per cent per annum, National Savings Certificate (NSC) with an interest rate of 6.8 per cent and Kisan Vikas Patra (KVP) with an interest rate of 6.9 per cent are popular among investors. is made.
EPF interest lowest in 4 decades: Employees’ Provident Fund Organization (EPFO) recently reduced the interest rate on EPF to 8.1 percent, which is the lowest in the last nearly four decades. However, interest rates on fixed deposits are being increased by banks.
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