In the period from April to September, a remarkable surge in collections under small saving schemes has been recorded.
Deposits in the Senior Citizen Savings Scheme have nearly tripled year-on-year, reaching ₹74,675 crore.
According to reports from The Indian Express, this marks an impressive 160% increase compared to the ₹28,715 crore collected during the same period the previous year.
Additionally, during the September quarter, the total collection under the Mahila Samman Saving Certificate amounted to Rs 13,512 crore.
Interest Rate Hike to 8.2%
In the June quarter of this year, the interest rate for the Senior Citizen Savings Scheme was raised from 8% to 8.2%. This interest rate has remained unchanged ever since.
Notably, the investment limit for senior citizens in the scheme was increased from ₹15 lakh to ₹30 lakh starting from April this year.
However, other small savings rates remain unaltered for the December quarter, with the interest rate for a 5-year recurring deposit scheme increasing by 20 basis points.
Steady 7.1% Interest Rate for PPF
Despite the adjustments in various small savings schemes, the interest rate for the Public Provident Fund (PPF) has remained stable at 7.1%.
Officials have emphasized this rate, given the tax benefits associated with the scheme. The PPF interest rate has not changed since April 2020 when it was reduced to 7.1%.
In April-June 2021, the government had initially proposed a reduction from 7.1% to 6.4%, but this decision was promptly withdrawn within a day.
