The interest rates of eight of 12 small savings schemes are expected to see a spike from 0.2% to 1.1% from January to March next year. However, no changes have been brought made to the interest rate of PPF (Public Provident Fund). PPF stands at 7.1% currently, the government in an office memorandum released on Friday has brought out.
The interest rate of the one-year savings scheme has been raised from 5.5 to 6.6%. Similarly, the interest rate has been changed from 5.7 to 6.8%, 5.8 to 6.9%, 6.7 to 7%, for two, three and five years savings plans respectively.
The rate of interest on Senior Citizen’s savings scheme changes from 7.6 to 8.0% the next year. The interest of the Monthly Income Account Scheme changes from 6.7 to 7.1%, National Savings Certificate from 6.8 to 7.0%.
The rate of interest for 5-year recurring deposits remains unchanged. The interest rate for the Sukanya Samriddhi Account scheme also remains unchanged from 7.6%. The interest rate of savings deposits also remains unchanged for the period.
The Sukanya Samriddhi yojana was launched in the year 2015 by Prime Minister Narendra Modi. The scheme was launched as a part of the ‘Beti Bachao, Beti Padhao’ scheme. The scheme requires a minimum investment of Rs. 250. 8.6 was the rate of interest at the time of launch. The interest in the scheme continued to be 7.6% since 2020.
The highest number of beneficiaries of the scheme are from Uttar Pradesh, followed by Tamil Nadu and Maharashtra. Lakshadweep and Andaman and Nicobar Islands have seen the least number of registration.