With the onset of the festival season, the Central government is all set make happy announcements. According to reports, the Narendra Modi government may increase the interest rates for the investments in the Public Provident Fund Account (PPF)-Sukanya Samriddhi scheme.The quarterly review of interest rates of small savings schemes like PPF, Sukanya Samriddhi, Senior Citizens Saving Schemes is expected to be done by the Finance Ministry this month.
There has been no change in the interest rates of PPF since April 2020. In such a situation, market experts are of the view that there is a high possibility of increase in interest rates in the upcoming review. This is because banks have increased the interest rates on FD and other schemes but there has been no change in the interest on PPF. In such a situation, PPF and other small savings account holders are expecting an increase in interest rates.
Crores of investors invested in PPF
Given the importance of PPF, the government often keeps its rates stable to provide a sense of dependability and security to investors. However, this has not been changed for a long time. At present, PPF investors are getting interest on PPF at the rate of 7.1%.
Interest on recurring deposits had increased
Recently the government had increased the interest rates on recurring deposits i.e. RD and post office FD. On June 30, the government had increased the rates for 1-year and 2-year post office FDs to 7.0%. Apart from this, the interest rate for 5-year Recurring Deposit (RD) of Post Office was increased to 6.5%.