Govt raises curiosity on 5 small financial savings schemes

NEW DELHI : After sustaining established order for 10 straight quarters, the Centre has revised rates of interest on 5 small financial savings schemes—together with the senior citizen financial savings scheme (SCSS) and Kisan Vikas Patra (KVP)—by as much as 30 foundation factors for the October-December interval.

One foundation level is one-hundredth of a proportion level.

The division of financial affairs on Thursday hiked the rates of interest on three-year publish workplace time period deposit to five.8% from 5.5% and on two-year time period deposits to five.7% from 5.5%. Interest payouts on SCSS and KVP have been hiked by 20 bps and 10 bps, respectively. The KVP scheme will now have a tenure of 123 months, implying an rate of interest of seven% in opposition to 6.9% earlier.

The publish workplace month-to-month earnings scheme can pay out the next rate of interest by 10 bps at 6.7% for the December quarter. Other fashionable schemes comparable to Public Provident Fund, National Savings Certificate and Sukanya Samriddhi Scheme will proceed to pay rates of interest of seven.1%, 6.8% and seven.6%, respectively, as earlier than.

These small financial savings schemes are fashionable among the many salaried class for tax financial savings, and their returns are greater than financial institution fastened deposits.

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