Terrible news for speculators, especially the individuals who rely upon little savings plans like MIS, NSC, SCSS, and PPF for retirement income or everyday living. For, when interest rates– both deposit & lending – are going up, the government has informed that there will be no adjustment in interest rates of different little savings plans.
“Based on the choice of the government, interest rates for little savings plans are told on quarterly premise since April 2016. Likewise, the rates of interest on different little savings plans for the second quarter of the financial year 2018-19 gazing first July 2018 and finishing on 30th September 2018 will stay unchanged from those informed for the principal quarter of the financial year 2018-19,” the government has told.
This has positively come as terrible news for the individuals who were expecting the interest rates for little savings plans to go up in the present rising interest administration. It might be noticed that the government had decreased interest rates for Q4 of 2017-18 by 0.2% when contrasted with Q2 and Q3 for the vast majority of the little savings plans.
Revised interest rates on different little savings plans for Q1 and Q2 of FY 2018-19:
“All in all, the government is seeking after the arrangement of securing the enthusiasm of little savers, particularly savings for the advantage of the girl child (SSAS), senior citizens (SCSS), and so on. Nonetheless, it might be noticed that a diminishment of 0.2% in interest rates on little saving has been effected amid Q4 (0.1% in Q1 and Q2) of FY 2017-18 over the plans with the exception of the Post Office Savings Account, which has been left immaculate since 2015-16. Be that as it may, there was no change in Q3 interest rates for little savings,” said ICAI in its Income Tax Update.