Small sav­ings set to fetch lower in­ter­est

Hindustan Times ST (Mumbai) - HT Navi Mumbai Live - - FRONT PAGE - HT Correspondent ht­metro@hin­dus­tan­times.com

NEW DELHI: The in­ter­est earned on a range of state-run sav­ing schemes in­clud­ing the pub­lic prov­i­dent fund will be linked to mar­ket rates that will be re­vised ev­ery quar­ter, the fi­nance min­istry said on Thurs­day.

The new sys­tem, ef­fec­tive from April 1, could re­sult in lower in­ter­est rates earned on th­ese schemes given that mar­ket rates move in tan­dem with govern­ment bond rates that are cur­rently on a down­ward trend.

Ded­i­cated schemes for the el­derly and girl chil­dren — the se­nior cit­i­zens sav­ing scheme (SCSS) and the re­cently launched Sukyana Sam­rid­dhi Yo­jana (SSY) — will, how­ever, be gov­erned by the ex­ist­ing sys­tem of in­ter­est rates fixed yearly.

HT first re­ported on Jan­uary 21 that th­ese two schemes will be ex­empted from mar­ket-linked in­ter­est rates.

CON­TIN­UED ON P14

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