PPF, SSY interest rate hike expected in July

The expected rate hikes come after subsequent RBI repo rate hikes

Here are the details

Background

PPF or Public Provident Fund is a tax-saving savings scheme

Other schemes like SSY, KVP, and post office schemes also exist

Their rates are usually influenced by RBI repo rates

What has happened?

The savings scheme rates are fixed on the basis of Shyamala Gopinath Committee

They are to follow market rates when possible

A RBI repo rate hike is prompting rate hike in these schemes

Expected interest rates

PPF interest rate expected to go up to 8%

SSY interest rate expected to go up to 8.5%

KVP interest rate expected to go up to 7.8%

Market in numbers

RBI repo rate has been hiked by 0.9% in last few months

Bank FD rates have gone up in accordance

Govt bonds rates are also up

Want to know about prevailing bank rates?

Here is an ultimate guide to the best banks for FD in India in 2022!