PPF, Senior Citizen Savings Scheme, and Sukanya Samriddhi Account: Interest rates of small savings schemes are due for revision at the end of this month. The interest rates of small savings schemes are linked to yields of 10-year Government Securities in the secondary market. There are set formulae for mark-ups over the previous three months average yield of relevant G-Secs of comparable maturity. Let s see if you are in for a New Year bonanza from the Central Government this time.
The Central Government reviews the interest rates of small savings schemes every quarter based on the G-Secs yields of the previous three months. To know whether there will be a hike in post office schemes for the October-December quarter, you need to understand how the interest rates are calculated first. There are set formulae for mark-ups over the previous three months average yield of relevant G-Secs of comparable maturity. Find out what experts suggest.