Will rising g-sec yields raise the small savings rate?3 min read 06 Feb 2018, 04:57 PM IST
While the small savings rates may not go down further, before you make a decision on a financial product to invest in, you should compare it with the other avenues
Since April 2016, interest rates of all small saving schemes have been linked to government bond yields and are now recalibrated on a quarterly basis. Over the last couple of years, interest rates of most small savings schemes have declined about 1 percentage point. For instance, the rate on Senior Citizen Savings Scheme has come down from 9.3% in FY2015-16 to 8.3% now.