The government has decided to revise Small Saving Schemes Interest Rates on a Quarterly basis.So, if comparable maturity G-sec rate is say 8.5% then the interest rate on PPF will be determined as 8.75%. Mark-up here refers to ‘Spread’.įor example : The interest rate on PPF has a mark-up of 25 basis points over and above the G-Sec rate (Govt Bonds rate). As per the current norms, the interest rates of these small saving schemes are linked to the yield of government bonds of comparable maturity (with a small mark-up) and are revised once a year.Let’s have a look at what are the changes that have been implemented regarding Small saving Schemes’ interest rates Small Saving Schemes Interest Rates & New norms w.e.f. Some of the very popular schemes which fall under NSS are as below 9 lakh crore are tied up in small savings schemes. It is estimated that nearly $137 billion or over Rs.
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