Investors in Small Financing Schemes can relax. Interest rates on deposit schemes have been raised from April 1.
The interest rate for deposits, including public provident fund, is likely to be between 15 and 20 basis points.
The interest rate on PFF will be 7.80 per cent. Senior Citizens Savings Scheme will be 8.50 per cent and Sukanya Samridhi Yojana will be 8.25 per cent.
The revenue from government bonds is rising in the ongoing monthly basis. The 10-year bond rate is 7.5%.
In 2011, the government had decided to link the interest rate of small deposit schemes to the government bonds as per the recommendation of Shyamala Gopinath Committee.
Interest on similar term deposits would be 25 to 100 basis points higher than government bonds.
Though the Gopinath Commission had directed to fix interest once a year, the government decided to revise interest rates every three years.