By the year 2022, the government has given a chance to be happy to those crores of people of the country, who do their small savings in their post office or other government savings schemes. The interest rate on these has increased, so now the question is whether the banks will also increase the interest rate on their savings schemes.
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Small Saving Schemes Interest Rate Hike: Crores of people in the country deposit their small savings every month in the post office or other small savings schemes of the government. For the government too, these schemes are like filling the ocean drop by drop, while people also get interest on it. Now, just before the end of the year 2022, the government has increased the interest rates of some schemes of the post office, in such a situation, the question definitely arises whether the banks will also increase the interest rate on their savings schemes. Let’s know…
The government announces the rate of interest for its small savings schemes on a quarterly basis. According to the order issued on Friday, the government has increased the interest rate from 0.20 percent to 1.10 percent for other schemes except Public Provident Fund and some schemes. These interest rates will be valid for the period from January to March.
Interest rates have increased on these schemes
The savings schemes on which the government has increased the interest rate include Post Office Fixed Deposit Scheme, National Savings Certificate and Senior Citizen Saving Scheme. Now 1.10 percent more interest will be given on FDs made in the post office. At the same time, the National Savings Certificate Scheme will get 7 percent interest instead of 6.8 percent and the Senior Citizen Saving Scheme will get 8 percent interest against 7.6 percent. The benefit of increase in interest rates will also be available on Kisan Vikas Patra. Now instead of 6.7 percent, interest will be 7.1 percent.
Banks will increase the interest of their schemes
Recently, when the Reserve Bank of India (RBI) After increasing the repo rate, many banks have announced to increase the interest rates on their FD schemes. Interest rates on bank FDs have been increasing continuously since May 2022. Some banks are giving interest of more than 7 percent on FD. Now that the government has also increased the interest rates on its savings schemes, the pressure will increase on the banks to pay more interest on their savings deposit schemes.
About this related to the banking sector Ashwini Rana, Expert and Founder of Voice of Banking Says that the Finance Ministry has announced to increase the interest rate on some small savings schemes from 0.20 to 1.10% from January 2023. This is the second time in a row that interest rates have been increased on a quarterly basis. This step of the government will benefit the customers depositing in the post office, while there will be pressure on banks to increase the interest rate on deposits. While the impact of the increase in the repo rate has been more on the borrowers, the same benefit has not yet been received by the depositing customers. Especially senior citizens have been demanding for a long time to increase the interest rate on deposits.
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