There is excellent news for participants in modest savings schemes who plan to make investments in the new year. The Modi administration might announce a rise in interest rates for micro-savings programmes on December 31, 2022.
For those investing in small savings plans in the new year, there is good news. The Modi administration may declare a rise in interest rates for modest savings plans on December 31, 2022. The interest rates for small savings plans for the months of January through March for the final quarter of the fiscal year 2022–23 will be reviewed by the Finance Ministry. This covers PPF and Sukanya Samruddhi Yojana, and NSC (NSC) might announce a hike in interest rates on small savings plans.
These small-savings programmes’ interest rates rose.
In the third quarter, only the interest rate on the Kisan Vikas Patra was raised, from 6.9 percent to 7 percent. The maturity time was shortened to 123 months from the previous 124 months. The Senior Citizen Savings Scheme now has an interest rate of 7.6 percent instead of 7.4 percent.
The interest rate on the Post Office two-year fixed deposit scheme was increased from 5.5 percent to 5.7 percent, and the interest rate on the three-year fixed deposit scheme was increased from 5.5 percent to 5.8 percent. These increases were made to the interest rates on the Monthly Income Account Scheme, Post Office two-year fixed deposit scheme, and 3-year fixed deposit scheme.
Government bond yields increased.
Over the past year, inflation, the rupee’s decline versus the dollar, and an increase in interest rates have increased yields on government bonds. Although bonds such as NSC and Sukanya Samriddhi Yojana have been associated with these bonds, their interest rates have remained the same. Interest rates for these small savings plans should be 25 to 100 basis points greater than the yields on government bonds, according to a 2011 Gopinath Committee recommendation.