National Savings Certificate (NSC) interest rate revision in September. Will it increase over 7.7%?
National Savings Certificate (NSC) Interest Rate News September 22: The quarterly review of interest rates for NSC and other small savings schemes by the Finance Ministry is due to take place this month. The NSC interest rate for the October-December quarter of FY 2023-24 will be announced by September 30. Even as accountholders are hoping for a further hike in NSC interest rate, it is unlikely to happen this time, according to experts. However, there is always room for a surprise hike.
The Finance Ministry kept the NSC account interest rate for the July-September quarter at 7.7%. This interest is compounded annually but paid on maturity after 5 years.
Ahead of the review, Experts think a further hike in the NSC interest rate for the October-December quarter is unlikely.
According to Col. Rakesh Goyal (Retd), a Certified Financial Planner and Founder of Lets Invest Wisely, the status quo in interest rates of small savings schemes like PPF, NSC, SCSS etc. is likely to be maintained in the current economic climate. He says that the interest rate cycle has also not peaked yet. Therefore, the Government may keep the NSC interest rate unchanged at 7.7% for the upcoming quarter.
Also Read: Public Provident Fund (PPF) interest rate is to be reviewed this month. Will it increase?
With a 7.7% interest rate, NSC is one of the safest fixed-income options for senior citizens. This NSC interest rate is also better than the fixed deposit interest rates offered by most of the top banks currently on deposits of 5 years. It is also better than the 5-year Time Deposit in the Post Office.
As the NSC scheme is directly backed by the Government of India, the principal invested in this scheme and the interest earned are guaranteed. However,
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