Tuesday, July 8, 2025
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Will PPF, Sukanya Samriddhi, and NSC interest rates drop? The government can make a decision

Interest Rates on Small Savings Schemes: Some analysts feel that the likelihood of a rate decrease is slim, as the rate of inflation continues to rise; in such a situation, the government will be unable to reduce interest rates.

Updates on Small Savings Plans: Small savings programs like Sukanya Samriddhi, National Savings Certificates (NSC), and PPF may see their interest rates drop. According to various media sources, the central government may decide to lower the interest rates on small savings schemes. If this happens, small savings schemes will get less interest starting July 1.

Getting ready to lower interest rates on modest savings accounts!

Experts feel that both financial and monetary assistance is required to re-establish growth momentum. Reduced interest rates on modest savings accounts will lower the government’s borrowing costs, boosting the economy. Some experts also believe that a rate decrease is unlikely because inflation continues to rise; in such a situation, the government will be unable to reduce interest rates.

Read More: Corona: Has the government learned a lesson from the second wave, how ready are the health facilities for the third wave

Is there going to be an interest rate review?

Let us remind you that on March 31, only days before the assembly elections in five states, the interest rates on small savings schemes were slashed, but the next day, Finance Minister Nirmala Sitharaman reversed her decision, calling it a mistake. It is not difficult to see why the administration reversed its decision in light of the upcoming assembly elections, but the government currently has no such compulsion. Every quarter, the government sets the interest rates for modest savings schemes. The next evaluation is scheduled for today, June 30. According to media reports, the notification can be given again starting in July. Small investors will be severely harmed if interest rates are lowered.

After the elections, rate cuts will commence!

Most modest savings schemes are currently offering interest rates above 6.9%. The Reserve Bank has decreased the repo rate by 1.75 percent since August 2019. Since then, small savings scheme interest rates have been reduced by 0.8-1 percent. The administration is rumored to be looking into the possibility of reducing savings programs. The interest rates on small savings programs may be slashed now that the assembly elections are done, according to CARE Ratings Chief Economist Madan Sabnavis.

what is the rate of interest?

Sukanya Samriddhi Scheme currently has a 7.6% interest rate available. Senior Citizen Saving Scheme 7.4 percent, Public Provident Fund 7.1 percent, Kisan Vikas Patra 6.9 percent, National Saving Certificate 6.8 percent, and Monthly Income Account 6.6 percent. Small scheme interest rates are reviewed every quarter. The first quarter of this year’s financial year will be reviewed in June.

Current interest rates of small savings schemes

Scheme Interest Rate

– Sukanya Samriddhi Scheme (SSS) 7.6%

– Senior Citizen Saving Scheme 7.4%

– Public Provident Fund (PPF) 7.1%

– Kisan Vikas Patra (KVP) 6.9%

– National Saving Certificate (NSC) 6.8%

– Monthly Income Account 6.6%

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