Government gift on small savings plans in Navratri, more profit will be available here from October

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In Navratri, the central government has brought good news to the people who invest in small savings plans. On Thursday, the cabinet raised the interest rate of several small savings schemes for the third quarter (October-December). This time, interest rates have been raised by 30 basis points, or 0.3 percent for the quarter beginning October 1. This increase has been made on some small savings plans, but this is the first time in about 27 months that there has been any kind of revision to the interest rates of the small savings plan.

What changed: After this change, there will now be 5.8 percent interest on the three-year deposit at the post office. Until now, this was 5.5 percent. For example, interest rates will rise by 0.3 percent in the third quarter of the current financial year. At the same time, the senior savings plan now receives an interest rate of 7.6 percent. Until now, this scheme had an interest rate of 7.4 percent. Under Kisan Vikas Patra, the government has adjusted both the term of office and the interest rate. On this basis, the interest rate on Kisan Vikas Patra is now 7.0 percent, previously 6.9 percent. Now it will mature in 123 months instead of 124 months. This means that people who invest in these schemes will now get more profit.

Where has not changed: The interest rate on the Public Provident Fund (PPF), popular among wage earners, has been maintained at 7.1 percent. Apart from that, the interest on Sukanya Samriddhi Yojana for subsidiaries has also been maintained at 7.6 percent. At the same time, the interest rate on five-year periodic deposits remains available at 5.8 percent as before.

Read this-Interest rates rise from PPF to Sukanya! good news after 27 months

Previously, interest rates were revised during the April-June 2020 quarter. Let us tell you that the government reviews small savings plans every quarter. After this, it is decided to raise or lower the interest rate or to stabilize it. This decision is taken by the Ministry of Finance.