The central authorities has raised the curiosity on two small financial savings scheme for January-March 2024 by 10-20 foundation factors.
Whereas the rate of interest on three-year time deposit has been elevated by 10 foundation factors to 7.1 per cent from 7.0 per cent, the curiosity on the Sukanya Samriddhi Account Scheme has been hiked by 20 foundation factors to eight.2 per cent for January-March 2024.
There’s nevertheless no change in rates of interest of all different small financial savings schemes and they’ll proceed to supply the identical fee of curiosity as they did in October-December 2022, based on Finance Ministry.
One foundation level is one-hundredth of a share level.
In India, Small financial savings rates of interest are set by the federal government and are linked to market yields on authorities securities at a ramification of 0-100 foundation factors over the yield of those securities of comparable maturities.
Each time market yields on authorities securities go up, rates of interest on small financial savings schemes must even be elevated.
In September-November 2023, which is the reference interval for small financial savings rates of interest for January-March 2024, the yield on five-year authorities bonds rose by round 10 foundation factors, whereas 10-year bond yields rose by 15 foundation factors, official knowledge confirmed.
It perhaps recalled that the finance ministry began elevating small financial savings pursuits in October-December 2022 after leaving them unchanged for 9 consecutive quarters.
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