The move is especially expected to benefit small savers and
senior citizens
The Finance Ministry has left unchanged interest rates on
small savings schemes such as the Public Provident Fund (PPF), National Savings
Certificate (NSC), Sukanya Samriddhi Yojana (SSY) and post office savings
schemes.
The move is expected to benefit small savers and senior
citizens. In a circular dated September 30, it notified that FY20
interest rates for the October to December quarter would be same as that in the
July to September quarter.
In the July-September quarter, rates were cut by 10 basis
points (1 bps = 0.01 percent) on all schemes, except interest on savings
account.
PPF will continue to offer 7.9 percent interest, Senior
Citizens Savings Scheme (SCSS) 8.6 percent and post office time deposits
between 6.9 percent and 7.7 percent.
There were expectations that the government will cut
interest rates (pegged at 25-100 bps above government bond yields of the same
maturity) would be reduced as well. Banks cut fixed deposit rates in line with
the Reserve Bank of India’s policy rate cuts.
Derivative-Free Trial, Financial Advisory Company, Financial Planning
Call on:9977499927
* Investment & Trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance