Good news! Modi Govt hikes interest rates on these small savings schemes – Check details

financialexpress.com:

Will the Modi government raise the interest rates of small savings schemes for the coming year 2024 or will they again be left unchanged like those in the previous quarters – this was the question on the top of the minds of most retail investors before the rate announcement.

However, there is finally some good news for them as the Modi Government has revised the rates of interest on a few small savings schemes for the fourth quarter of financial year 2023-24 starting from 1st January, 2024 and ending on 31st March, 2024.

While the interest rates on key small savings schemes such as National Savings Certificate (NSC), Senior Citizens Savings Scheme (SCSS) and Public Provident Fund (PPF) have been kept unchanged at 7.7%, 8.2% and 7.1%, respectively, the rates on 3 Year Time Deposit and Sukanya Samriddhi Account Scheme have been marginally increased from 7.0% and 8.0% to 7.1% and 8.2%, respectively, which may give some relief to those looking to invest in these schemes.

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It may be noted that small savings schemes such as PPF, NSC, SCSS, and Sukanya Sammriddhi Yojana (SSY), among others, have been popular among retail investors because besides offering a decent return in the long run, they also keep one’s risk exposure at a low level.

You may also choose a small savings scheme in sync with your financial goals. For instance, if you want to invest for the higher education of your child, you may invest in NSC, PPF, and post office fixed deposits. Similarly, if you are planning to invest for your girl child’s marriage who is below the age of 10, you may invest in Sukanya Sammriddhi Yojana.