Govt keeps small savings rates unchanged for December quarter
AI Summary
The government's decision to maintain interest rates on small savings schemes, including the PPF and Sukanya Samriddhi accounts, reflects confidence in strong inflows despite rising government security yields. For retail investors, this stability may encourage continued investment in these schemes, particularly as they offer attractive rates compared to traditional bank deposits. However, if global bond yields continue to rise, investors should remain vigilant, as future rate hikes could impact the attractiveness of these savings options.
New Delhi: The government on Wednesday kept interest rates unchanged for a dozen small savings schemes including the tax-saving Public Provident Fund (PPF) and Sukanya Samriddhi accounts for the three months through December, holding it for 11 straight quarters.
Given that the government uses collections via small savings schemes to partly fund its fiscal deficit, the latest move signals the Centre's belief that such inflows will remain strong even without rate hikes.
Original Article
Published on Livemint
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This is a economy news update from Livemint, published on 30 September 2026.
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