Will govt increase small savings scheme rates?
Inflation is on the rise and government bond yields are also high, potentially leading to an interest rate hike on small savings schemes, according to the wire material. The Finance Ministry is set to review these rates on September 30, 2026, for the upcoming October-December 2026 quarter. If the ministry decides to increase the rates, it would be the first change since December 2024.
Despite high bond yields, small savings schemes currently offer over 7% interest, with the Senior Citizen Savings Scheme (SCSS) and Small Savings Account (SSA) offering 8.2% each. The government has previously refrained from decreasing rates despite inflation indicators, and this time, the big question is whether they can increase the rates.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
