The meeting scheduled for the end of this month is likely to raise interest rates
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Big news for small investors The government may increase the interest rate on the Public Provident Fund or PPF, which has remained constant for the past 9 quarters. Currently PPF is earning 7.1 percent interest per annum As interest rates on G-Sec or government securities continue to rise, it is speculated that interest rates on PPF are likely to rise.
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Current interest rate of G-Sec is 7.3 percent which is higher than PPF G-Sec interest rate was 6.5 percent in January 2022, 7.6 percent in June. Small Savings Scheme has kept interest rates unchanged for nearly 9 consecutive quarters till September. Interest rates on small savings schemes including PPF have gone negative after G-Sec interest rate hike. As a result, there is a possibility of increasing the interest rate in the meeting which is scheduled to be held at the end of this month
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There is a direct link between the interest rates of G-Sec and PPF PPF offers 1 percent higher interest than G-Sec Decisions in this regard are taken in quarterly meetings The higher the market yield of G-Sec, the higher the interest rate on small savings schemes like PPF.
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Other Savings Yojanas May Also Get Profits
PPF with other Small Savings Yojanas are likely to increase their interest rates. Among these, the interest rates of National Savings Certificate, Kishan Bikash Patra, PPF, Senior Citizen Savings Yojana and Sukanya Samriddhi Yojana may be increased. It is expected that this decision may be taken in the meeting which will be held at the end of this month
