Interest Rates On Small Saving Schemes May Be Hiked For April-June Qtr

As against the Jan-March qtr of the current CY in which the govt. slashed rates by 20 basis points or 0.2% for small savings schemes including NSC and PPF, it is highly expected that interest rates are set for a hike for the next quarter beginning April. The returns on small savings schemes are revised quarterly based on the G-Sec yields of the previous three months. This has come in after the Govt. of India Ministry of Finance notification dated February 16, 2016.

Since January 1, 2018 bond yields have averaged to 7.5% and this suggests an increase in interest rates of small saving schemes such as PPF, NSC, SCSS, Sukanya Samriddhi etc. by 15-20 bps. 1 basis points or 1 bps is one-hundredth of a percentage point.

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