Post Office: New Year’s gift, more interest will be available on deposits in post office from today

15

Post Office Investment: The central government has given a new year gift to the common man by increasing the interest rate on small savings schemes. (High interest on Small Savings Plan Deposits) Government has increased the interest rate on National Savings Certificate, Post Office Term Deposit, Senior Citizen Savings Schemes. However, there has been no change in the interest rate of PPF. The new interest rates will be applicable from today.

According to the notification issued by the Ministry of Finance, the interest rates on some savings schemes have been increased from 0.20 per cent to 1.10 per cent for the January to March quarter. Public Provident Fund interest rates remain unchanged at 7.1 per cent. The interest rate of Kisan Vikas Patra has been increased. The interest rate on Kisan Vikas Patra for 123 months will be 7 percent to 7.2 percent. Therefore, interest rates for small savings schemes have been announced for the January to March quarter. Many investors will benefit from this new decision. This will help in promoting investment.

How are the new interest rates on various small savings schemes?

According to the new decision, the National Savings Certificate (NSC) will get interest at the rate of 7 percent from January 1 today. At present the interest on NSC is 6.7 per cent. Also, the Senior Citizens Savings Scheme will fetch 8 per cent interest instead of the existing 7.6 per cent. There has been an increase of 1.1 per cent in the interest rate on the Post Office Fixed Deposit Scheme for a period of one to five years. Meanwhile, investors of PPF, Sukanya Samriddhi Yojana are disappointed with this decision.

According to the new decision, 6.6 percent interest will have to be paid on post office fixed deposits for one year, 6.8 percent for two years, 6.9 percent for three years and 7 percent for five years. Apart from this, instead of 6.7 percent, the monthly income plan will now get 7.1 percent interest. That’s why investing in it will be beneficial.

Disappointment among PPF account holders

However, the government has disappointed investors in PPF and Sukanya Samriddhi Yojana. There has been no change in the interest rates of both these schemes. The interest rate on Sukanya Samriddhi Yojana has been retained at 7.6 per cent, while the existing 7.1 per cent interest rate on Public Provident Fund (PPF) will remain unchanged. Apart from this, interest will continue to be available on savings deposits at the rate of 4 per cent per annum.

Comments are closed.