Small savings schemes shine as rates remain steady
Oct 13, 04:10

The government's decision in October to keep the rates on small-savings schemes steady has brought a sigh of relief to investors. Since 2016, the rate of interest payable on these schemes have been pegged to yields on government securities. But, the Reserve Bank of India' monetary policy report of October 2021 notes that the prevailing rates are 47-178 bps higher than the rates that would have been arrived at using that formula. By keeping the interest rates at attractive levels, government is addressing the need to support the low and middle-class households which typically invest in these schemes.

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