The schemes affected by this resolution embody Mahila Samman Savings Certificate, Senior Citizen Savings Scheme (SCSS), Post Office Monthly Income Scheme (POMIS), Sukanya Samriddhi Yojana (SSY), Public Provident Fund (PPF), National Savings Certificate (NSC) and Post Office Time Deposits (POTD).
“The rates of interest on various Small Savings Schemes for the second quarter of FY 2024-25 starting from July, 2024 and ending on 30′ September, 2024 shall remain unchanged from those notified for the first quarter (1St April, 2024 to 30th June, 2024) of FY 2024-25,” the finance ministry stated in a press launch dated June 28, 2024.
Source: ET quoting Ministry of Finance
Consequently, the Public Provident Fund (PPF) will keep its rate of interest of seven.1% for the interval from July to September 2024.
According to an ET report, the curiosity rates for small financial savings schemes are reviewed by the authorities on a quarterly foundation, following the methodology proposed by the Shyamala Gopinath Committee.
According to the committee’s suggestions, the curiosity rates for numerous schemes ought to be set between 25 to 100 foundation factors increased than the yields of presidency bonds with corresponding maturities. This technique is meant to maintain the curiosity rates of small financial savings schemes aggressive and interesting to buyers.
In the December 31, 2023 quarter, the authorities elevated the curiosity rates for sure small financial savings or publish workplace schemes. However, with the exception of the recurring deposit fee, the curiosity rates for all different schemes have remained unchanged. Notably, the PPF rate of interest has stayed at 7.1 p.c since the April-June 2020 quarter.
The Reserve Bank of India (RBI) has carried out a sequence of serious rate of interest hikes since May 2022. Consequently, banks have adopted go well with by growing the curiosity rates on fastened deposits (FD), which is a optimistic growth for FD buyers who’ve skilled a chronic interval of low curiosity rates. However, the RBI has maintained the established order by refraining from additional adjusting the key rates in the final 5 coverage conferences.
