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The Indian government has reduced the interest rate on <keyword id="807514" type="UNKNOWN" weightage="20" keywordseo="small-saving-schemes">small saving schemes</keyword> such as <keyword id="76579" type="CITY" weightage="20" keywordseo="PPF">PPF</keyword>, Kisan Vikas Patra and Sukanya Samriddhi scheme. 
 
In a bid to make banks cut their deposit rates, the government has lowered the interest rate by 0.1% for the April-June quarter. 
 
Meanwhile, interest rate on savings deposits has been retained at 4% annually. 
 
A finance ministry notification said investments in the public provident fund (PPF) scheme will fetch lower annual rate of 7.9 per cent, the same as 5-year National Savings Certificate. The existing rate for these two schemes is 8 per cent. 
 
Kisan Vikas Patra (KVP) investments will yield 7.6 per cent and mature in 112 months. 
 The one for girl child savings, <keyword id="3035572" type="UNKNOWN" weightage="20" keywordseo="Sukanya-Samriddhi-Account-scheme">Sukanya Samriddhi Account Scheme</keyword>, will offer 8.4 per cent annually, from 8.5 per cent at present, while it will be the same at 8.4 per cent for the 5-year Senior Citizens Savings Scheme. The interest rate on the senior citizens scheme is paid quarterly. 
 
Term deposits of 1-5 years will fetch a lower 6.9-7.7 per cent that will be paid quarterly while the 5-year recurring deposit has been pegged lower at 7.2 per cent. 
 
"On the basis of the decision of the government, interest rates for small savings schemes are to be notified on a quarterly basis," the ministry said while notifying the rates for the fourth quarter of 2016-17 starting from April 1, 2017. 
 
While announcing the quarterly setting of interest rates, the ministry had said the rates of small saving schemes would be linked to government bond yields. 
 
The move is expected to prompt banks to lower the deposit rate in line with the small savings rate as offered by the government.

Interest rates on small saving schemes like PPF lowered

The government on Tuesday slashed interest rates on small savings schemes, including NSC and PPF, by up to 1.4 percentage points for the first quarter of 2020-21, in line with moderation in bank deposit rates. Interest rates for small savings schemes are notified on a quarterly basis. "The rates of interest on various small savings schemes for the first quarter of the financial year 2020-21 starting April 1, 2020, and ending on June 30, 2020, have been revised," the finance ministry said in a notification. With the reduction, term deposits of 1-3 years will now earn an interest rate of 5.5 per cent as against 6.9 per cent, down 1.4 percentage points, the notification said. However, the interest rate on the five-year term deposit has been reduced to 6.7 per cent from current rate of 7.7 per cent, it said adding that interest rate on these are paid quarterly. The cut in the interest rate on a 5-year <keyword id="697865" type="PERSON" weightage="20" keywordseo="Recurring-Deposit">recurring deposit</keyword> is 1.4 percentage points. The new rate for this saving instrument will be 5.8 per cent. The interest rate for the five-year Senior Citizens Savings Scheme has been lowered by 1.2 percentage points to 7.4 per cent, from the existing 8.6 per cent. The interest on the senior citizens scheme is also paid quarterly. However, interest on savings deposits has been retained at 4 per cent annually. The girl child savings scheme Sukanya Samriddhi Yojana account will earn a lower rate of 7.6 per cent as against 8.4 per cent during the first quarter of the next financial year 2020-21. The interest rate moderation for <keyword id="114852" type="COMPANY" weightage="20" keywordseo="Public-Provident-Fund">Public Provident Fund</keyword> (PPF) and National Savings Certificate (NSC) for the next quarter is 0.8 percentage points and 1.1 percentage points, respectively, it said. The rates will now stand at 7.1 per cent for PPF and 6.8 per cent for NSC. The <keyword id="162207" type="PERSON" weightage="20" keywordseo="Kisan-Vikas-Patra">Kisan Vikas Patra</keyword> (KVP) will give a lower yield of 6.9 per cent with enhanced maturity period of 124 months as against 7.6 per cent and 113 months maturity at present. While announcing the quarterly setting of interest rates in 2016, the finance ministry had said the rates of small savings schemes would be linked to government bond yields. Last month, Economic Affairs Secretary Atanu Chakraborty had hinted at revision in small savings rates for the next quarter, in line with market rate for speedier transmission of monetary policy rate. Stating that the Shyamala <keyword id="60820" type="PERSON" weightage="20" keywordseo="Gopinath">Gopinath</keyword> Committee report has been accepted, but operation of the linkage was still in the works, he had said "wait for this quarter interest rates. That will give you a fairly good indication." Bankers have been complaining that high small savings rates prohibits them to cut their deposit rates immediately to check flight of savings. DP HRS

India lowers interest rate on small savings to 5.5%

(Eds: Adding details) New Delhi, Mar 31 () The government on Tuesday slashed interest rates on small savings schemes, including NSC and PPF, by up to 1.4 percentage points for the first quarter of 2020-21, in line with moderation in bank deposit rates. Interest rates for small savings schemes are notified on a quarterly basis. "The rates of interest on various small savings schemes for the first quarter of the financial year 2020-21 starting April 1, 2020, and ending on June 30, 2020, have been revised," the finance ministry said in a notification. With the reduction, term deposits of 1-3 years will now earn an interest rate of 5.5 per cent as against 6.9 per cent, down 1.4 percentage points, the notification said. However, the interest rate on the five-year term deposit has been reduced to 6.7 per cent from current rate of 7.7 per cent, it said adding that interest rate on these are paid quarterly. The cut in the interest rate on a 5-year recurring deposit is 1.4 percentage points. The new rate for this saving instrument will be 5.8 per cent. The interest rate for the five-year Senior Citizens Savings Scheme has been lowered by 1.2 percentage points to 7.4 per cent, from the existing 8.6 per cent. The interest on the senior citizens scheme is also paid quarterly. However, interest on savings deposits has been retained at 4 per cent annually. The girl child savings scheme Sukanya Samriddhi Yojana account will earn a lower rate of 7.6 per cent as against 8.4 per cent during the first quarter of the next financial year 2020-21. The interest rate moderation for Public Provident Fund (PPF) and National Savings Certificate (NSC) for the next quarter is 0.8 percentage points and 1.1 percentage points, respectively, it said. The rates will now stand at 7.1 per cent for PPF and 6.8 per cent for NSC. The Kisan Vikas Patra (KVP) will give a lower yield of 6.9 per cent with enhanced maturity period of 124 months as against 7.6 per cent and 113 months maturity at present. While announcing the quarterly setting of interest rates in 2016, the finance ministry had said the rates of small savings schemes would be linked to government bond yields. Last month, Economic Affairs Secretary Atanu Chakraborty had hinted at revision in small savings rates for the next quarter, in line with market rate for speedier transmission of monetary policy rate. Stating that the Shyamala Gopinath Committee report has been accepted, but operation of the linkage was still in the works, he had said "wait for this quarter interest rates. That will give you a fairly good indication." Bankers have been complaining that high small savings rates prohibits them to cut their deposit rates immediately to check flight of savings. DP HRS

Govt cuts interest rate on small savings schemes for June quarter

Mumbai, Jun 9 () In order to attract deposits, small finance lender Equitas Small Finance Bank on Tuesday said it has increased the rate of interest on savings account having deposits between Rs 1 lakh to Rs 5 crore to 7 per cent per annum from 5.5 per cent. The new rates are applicable from Wednesday, the bank said in a release. "We are offering customers 7 per cent interest rate per annum having savings balance between Rs 1 lakh and Rs 5 crore. We believe that this will enable existing customers and also new to bank savings account holders an opportunity to save more with better returns," the bank's president and country head (branch banking, liabilities, product and wealth), Murali Vaidyanathan, said. The lender has two slabs in the savings account deposits - up to Rs 1 lakh and above. The bank has left rates on savings account deposits up to Rs 1 lakh at 3.5 per cent. It has close to 6 lakh savings accounts. HV KPM MKJ MKJ

Equitas Small Fin Bank hikes interest on saving account deposits

<a href="http://www.businessinsider.in/Will-public-sector-lenders-prevent-banking-industrys-futuristic-makeover/articleshow/47910582.cms">Indian banking industry </a>doesn’t usually favour individuals when borrowing isn't cheap and savings rates trail headline inflation. However, with increasing competition, new banks have started to take notice of what customers want, and accordingly offer generous interest rates. 
However, one can’t be sure about the permanence of these offerings. 
 To serve the customers, new <keyword id="2419127" type="UNKNOWN" weightage="100" keywordseo="payment-banks">payment banks</keyword> (PBs) and <keyword id="4405380" type="UNKNOWN" weightage="100" keywordseo="small-finance-banks">small-finance banks</keyword> (SFBs) are offering interest rates as high as 7.25% on savings accounts, which is more than 300 basis points higher than the 4% offered by universal banks. 
 
Also read: <a href="http://www.businessinsider.in/airtel-payments-bank-is-here-heres-what-it-will-offer/articleshow/56499692.cms">Airtel Payments Bank is here. Here’s what it will offer</a> 
 
However, industry analysts and experts say these initial offers are like appetizers, adding that once the market evolves, rates will comed down. 
 
"Savings accounts are meant for transactions, and our belief is that people are not rate sensitive regarding such accounts: Attractive offers can give a temporary bump, but will not be economically viable for the entity in the long run," Samit Ghosh, CEO Ujjivan Small Finance Bank, told ET. 
 
Also read: <a href="http://www.businessinsider.in/paytm-gets-permission-to-launch-paytm-payments-bank-heres-what-vijay-shekhar-sharma-said/articleshow/56314204.cms">Paytm gets permission to launch Paytm Payments Bank. Here’s what Vijay Shekhar Sharma said</a> 
 
The <a href="http://www.businessinsider.in/strategy/RBI-ToIssue-Final-Guidelines-For-Small-Banks-By-Month-end/articleshow/45134370.cms">Reserve Bank of India</a> (RBI), country’s central bank, might not even interfere with these interest rates on offer. Experts believe that until and unless there is some stress on their capital position or some consumer grievances are reported, they can make strategies and decide their rates accordingly. 
 
Also read: <a href="http://www.businessinsider.in/IndiaPost-payments-bank-plans/articleshow/53337769.cms">IndiaPost aims to open 50 branches of payments bank by May next year</a> 
 
(Image source Huffpost)

7.25% interest on savings accounts! New banks turning dreams into reality

New Delhi, Dec 31 () The government on Tuesday kept the interest rates on small savings schemes, including NSC and PPF, unchanged for the fourth quarter of 2019-20 despite moderating bank deposit rates.
Public Provident Fund (PPF) and National Savings Certificate (NSC) will continue to carry an annual interest rate of 7.9 per cent, while Kisan Vikas Patra (KVP) will give a yield of 7.6 per cent and mature in 113 months.
Interest rates for small savings schemes are notified on a quarterly basis.
"The rates of interest on various small savings schemes for the fourth quarter of the financial year 2019-20 starting January 1, 2020, and ending on March 31, 2020, shall remain unchanged from those notified for the third quarter of the financial year 2019-20," the finance ministry said in a notification.
 The interest rate for the five-year Senior Citizens Savings Scheme has been retained at 8.6 per cent. The interest on the senior citizens' scheme is paid quarterly. Interest on savings deposits has been retained at 4 per cent annually.
The girl child savings scheme Sukanya Samriddhi Yojana account will offer 8.4 per cent rate during the first quarter of the next fiscal.
Term deposits of 1-5 years will fetch interest rate in the range of 6.9-7.7 per cent, to be paid quarterly, while the five-year recurring deposit is pegged at 7.2 per cent.
 While announcing the quarterly setting of interest rates in 2016, the finance ministry had said that rates of small savings schemes would be linked to government bond yields.
 The Reserve Bank of India (RBI) earlier this month had also kept interest rates static on inflationary concerns. DP MR
MR

Small savings schemes: Govt keeps interest rates unchanged for Jan-Mar qrt

New Delhi, Mar 31 () The government on Tuesday slashed interest rates on small savings schemes, including National Savings Certificate and Public Provident Fund, by up to 1.4 per cent for the first quarter of 2020-21, in line with moderation in bank deposit rates. Interest rates for small savings schemes are notified on a quarterly basis. With the reduction, term deposits of 1-3 years will now fetch an interest rate of 5.5 per cent from the existing 6.9 per cent, down 1.4 per cent, according to a notification by the finance ministry. Interest rates are paid quarterly, while the five-year term deposit will earn 6.7 per cent from the current rate of 7.7 per cent. DP HRS

Govt cuts interest rates on small savings schemes by up to 1.4 pc for Apr-Jun quarter

New Delhi, Mar 18 () The government is considering rate moderation for small savings schemes in the upcoming quarter, a development that could lead to speedier transmission of monetary policy rate cuts, sources said. During the current quarter, the government refrained from cutting interest rates on small savings schemes, such as Public Provident Fund (PPF) and National Savings Certificate (NSC), despite moderating bank deposit rates. Bankers have been complaining that high rates on small savings schemes prohibit them from cutting deposit rates. Currently, there is a difference of nearly 100 basis points between deposit rate of banks and small savings rate for one-year maturity. Earlier this week, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) will take a call on an interest rate cut and all options were on the table to counter the coronavirus blow. Last month, the governor in an interview with said, "We have said it in MPC resolution that there is a case for reducing the small savings rates and aligning it more with the formula-based rate fixation. We have referred to it in the MPC resolution." The MPC in its February Bi-monthly Monetary Policy Statement said that while there is a need for adjustment in interest rates on small saving schemes, the external benchmark system introduced from October 1 last year has strengthened the monetary transmission. The finance ministry has been nudging public sector banks to pass the whole repo rate cuts to retail loans for pushing consumption. Banks have resisted it fearing their margin will take a hit in case of 100 per cent transmission. Rates on small savings schemes are revised on quarterly basis. On December 31, 2019, the government decided to keep interest rates for small savings schemes like PPF and NSC unchanged at 7.9 per cent for the fourth quarter of the current financial year, while the rate for the Kisan Vikas Patra maturing in 113 months was kept at 7.6 per cent. The interest rate for 5-year Senior Citizens Savings Scheme was retained at 8.6 per cent, while that for savings deposits was kept unchanged at 4 per cent a year. The interest on the senior citizens' scheme is paid quarterly. However, the government had said that first quarter of the next financial year, the Sukanya Samriddhi Yojana will offer 8.4 per cent rate. DP HRS

Govt may cut rate on small savings schemes in next quarter

New Delhi, Feb 3 () Department of Economic Affairs Secretary Atanu Chakraborty has hinted at revision in small savings rate next quarter, in line with market rate, a development that could lead to speedier transmission of monetary policy rate.
 During the current quarter, the government refrained from cutting interest rates on small savings schemes, including Public Provident Fund (PPF) and National Savings Certificate (NSC), despite moderating bank deposit rates.
 "In India, right now we have about Rs 12 lakh crore in small savings schemes and roughly Rs 114 lakh crore in bank deposits. So the liability side of banks is getting affected by Rs 12 lakh crore. When banks say this, it seems a bit of a tail wagging the dog situation," he said.
 Nevertheless, he said that the rate of small savings should have some linkages to market rate, which is largely determined by the G-sec rates. 
 Stating that the Shyamala Gopinath Committee report has been accepted, but operation of the linkage was still in works, he said "wait for this quarter interest rates. That will give you a fairly good indication."
 There has been some signalling issue, which is being looked at, he told in an interaction. 
 Bankers have been complaining that high small savings rates prohibits them to cut their deposit rates immediately to check flight of savings.
 Currently, there is difference of nearly 100 basis point between deposit rate of banks and small savings rate for one year maturity.
 He further said that although the government is not dependent on small savings schemes, there is no plan to do away with the scheme as people use those instruments. 
 Asked if the government would resort to additional mop up to fund its increased fiscal deficit target, Chakraborty said there will be no extra market borrowing this year and there was no question of monetisation of deficit.
 The government has raised fiscal deficit target in the Union Budget to 3.8 per cent of the GDP from 3.3 per cent pegged earlier for 2019-20 due to revenue shortage.
 The government resorted to 'escape clause' under the Fiscal Responsibility and Budget Management (FRBM) Act which provides it leeway for relaxation of fiscal deficit roadmap during time of stress.
 On the Budget projection about GDP growth, tax collections and deficit, he said these numbers were very realistic and conservative.
 "Last year, we faced certain headwinds, and also took some policy decisions. I don't see an issue in meeting these targets," he said. DP ANS
ANS

Small savings rate may see moderation next quarter: DEA secy

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Eugenio Marongiu/Shutterstock</div></div></div><ul class="summary-list"><li>If you're saving money over a long period of time, you probably want to use a high-yield <a href="https://www.businessinsider.com/category/savings-account">savings account</a> rather than a <a href="https://www.businessinsider.com/category/checking-account">checking account</a>.</li><li>High-yield savings accounts pay out a small amount of interest, which compounds over time, making your money grow slowly but steadily.</li><li>Traditional checking accounts pay no interest, so no matter how long you leave it, you'll only have the money you deposited.</li></ul>If you're looking to save some cash, you have a few options.Investing holds the most potential for high returns, but also the most risk. That's why it's generally recommended for money you won't need in the next five years: If the stock market takes a dip and your portfolio dips with it, you'll have some time to recover.In the short term, however, two easy options are checking accounts and savings accounts. Traditional checking accounts are straightforward - perhaps you have paychecks direct-deposited there, you write checks from that account, or you use a debit card that withdraws from that account. They tend not to be the best option for saving, though, since they earn no interest.A bonus just for you: <a href="https://www.businessinsider.com/subscription/try-prime?fdasf" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url?q=https://www.businessinsider.com/subscription/try-prime?fdasf&amp;source=gmail&amp;ust=1550332057127000&amp;usg=AFQjCNFXssUiFWmHWZ063PKwZ7Gsi-Orkg">Click here to claim 30 days of access to Business Insider PRIME</a>Traditional savings accounts don't earn interest, either - but high-yield savings accounts do. Those are savings accounts like the ones offered by <a href="https://www.ally.com/bank/online-savings-account/osa.html?">Ally</a> (2.2% APY), <a href="https://www.marcus.com/us/en/savings/high-yield-savings">Goldman Sachs</a> (2.25% APY), or <a href="http://wealthfront.evyy.net/c/196318/173024/3104?subId1=biip_021519_savings-account-vs-checking&amp;u=https%3A%2F%2Fwww.wealthfront.com%2F" target="_blank" rel="noopener">Wealthfront</a> (2.24%). That money isn't invested in the stock market so it doesn't have the risk (or potential reward) of investments, but the bank does pay you a small amount to keep your money there.High-yield checking accounts exist, but <a href="https://www.magnifymoney.com/blog/earning-interest/best-high-yield-checking-accounts376922578/">the best options</a> tend to be at credit unions, which often have monthly requirements for eligibility, like a number of transactions, you generally won't see with a high-yield savings account at an online or traditional bank. According to a <a href="https://www.bankrate.com/landing/savings/rates-c/?pid=semgdtexacthighspyieldspsavingsspaccount&amp;sortprods=&amp;prods=&amp;ttcid=high%20yield%20savings%20accountckwd-127451844g9067609&amp;utm_source=google&amp;utm_medium=cpc&amp;utm_term=high%20yield%20savings%20account&amp;utm_cmpid=1024761521&amp;utm_adgid=49693529719&amp;utm_tgtid=kwd-127451844&amp;utm_mt=e&amp;utm_adid=257142396205&amp;utm_dvc=c&amp;utm_ntwk=g&amp;utm_adpos=1t1&amp;utm_plcmnt=&amp;utm_locphysid=9067609&amp;utm_locintid=&amp;utm_feeditemid=&amp;utm_devicemdl=&amp;utm_plcmnttgt=&amp;gclid=EAIaIQobChMI_-7ProW84AIVjeDICh2VbQy_EAAYASAAEgID0fD_BwE">list of top-rated high-yield savings accounts from Bankrate</a>, savers can expect annual interest rates to range between 2% and 2.5%. That sounds like very little growth, but a saver putting money into such an account will, over the long run, accrue far more than one using a checking account that does not accumulate interest.This chart compares the results of putting $100 each month into a savings account with a 2.4% annual interest rate compounded monthly with putting that $100 into a non-interest accumulating checking account. The difference is apparent over time:<div class="KonaFilter image-container display-table"><div><div class="image on-image">Business Insider/Andy Kiersz</div></div></div>After one year, there isn't too much of a difference: The checking account will have the $1,200 principal from the 12 monthly $100 deposits, while the savings account will have a balance of about $1,214.After five years, the difference becomes noticeable. The checking account will have a balance of $6,000, while the savings account will be at $6,368: Over $300 of interest will have accrued over those five years.After 10 years, the checking account will be at $12,000 while the savings account will have a balance of $13,547; after 20 years the checking account will have $24,000 and the savings account will have $30,765; and after 40 years the checking account will have $48,000 and the savings account will be at $80,450 - over $32,000 higher.That's not to say that keeping money in a savings account for 40 years is the most advantageous move. Generally, if you don't need the money for four decades, most experts would recommend investing it in the stock market. In this scenario, we've projected out 40 years just to show how compound interest (even a little) can work in your favor.The key difference between the two accounts is the compound interest rate for the savings account. Interest accrues both on the principal put into the account - the $100 per month in the above example - and on the interest already earned. That leads to an <a href="https://www.businessinsider.com/exponential-growth-moores-law-compound-interest-2019-2">exponential growth rate</a> for the savings account that, over time, far outstrips the linear growth rate of the non-interest-paying checking account.<ul class="read-more-links"><li>Read more:</li><li><a href="https://www.businessinsider.com/most-affordable-town-renters-every-state-2019-2" data-read-more-link="" data-e2e-name="read-more-link">Here's the most affordable town for renters in every US state</a></li><li><a href="https://www.businessinsider.com/how-to-solve-rubiks-cube-first-step-2019-2" data-read-more-link="" data-e2e-name="read-more-link">Here's the first thing you should do when you get a Rubik's Cube</a></li><li><a href="https://www.businessinsider.com/how-much-americans-earn-age-male-female-2019-1" data-read-more-link="" data-e2e-name="read-more-link">Here's how much male and female American workers earn at every age</a></li><li><a href="https://www.businessinsider.com/american-economy-maps-2019-1" data-read-more-link="" data-e2e-name="read-more-link">These 6 maps show how the economies of all 50 US states and DC are doing</a></li></ul> <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/what-its-like-to-do-your-own-taxes-for-the-very-first-time-2018-2">What it's like to do your own taxes for the very first time</a></h3> <div> </div> </div>

Here's exactly how much more you'll save in a high-yield savings account versus a checking account

<ul class="summary-list"><li>"Shark Tank" investor Kevin O'Leary slammed "Bidenomics" as a bad policy that's only helping the "big guys." </li><li>"Biden's focused only on the big guys. We've got to save small business right now," O'Leary said. </li></ul>"Shark Tank" investor Kevin O'Leary slammed President Joe Biden's new slogan to describe economic progress in the US: <a href="https://www.businessinsider.com/bidenomics-still-needs-to-deliver-on-student-loans-minimum-wage-2023-6" target="_blank" rel="noopener">Bidenomics</a>. The finance entrepreneur also known as "Mr Wonderful" highlighted the struggle for small businesses under Biden's economic policy, saying the president is only focused on big companies. "Biden's focused only on the big guys. We've got to save small business right now. We have to do everything in our power to make sure they have access to capital," O'Leary said in a <a href="https://twitter.com/kevinolearytv/status/1680597103700226049" target="_blank" rel="noopener">Fox Business interview</a>. "You talk to anybody running a small business between 5-500 employees, they cannot raise any money. That's bad economic policy," he added. O'Leary was likely referring to the fallout from Biden's massive fiscal-spending binge during the COVID-19 pandemic – high inflation and sharp increases in interest rates. In his <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2023/06/28/bidenomics-is-working-the-presidents-plan-grows-the-economy-from-the-middle-out-and-bottom-up-not-the-top-down/" target="_blank" rel="noopener">own words</a>, the president's philosophy aims to "rebuild our economy from the middle out and the bottom up, not the top down." That encapsulates government spending measures, including investment in infrastructure and education. But such measures have also had some adverse effects on US economy, fueling multidecade-high inflation that forced the Federal Reserve to raise interest rates by 500 basis points since last spring – the fastest pace since the 1980s.Higher rates are bad news for small businesses as they make borrowings costlier, making it more difficult to fund business operations."There's no Bidenomics for small businesses that represent 60% of the economy. Their access to capital is drying up by the day. We have to do everything in our power to make sure they have access to capital. We must save small businesses in America!" O'Leary said in a <a href="https://twitter.com/kevinolearytv/status/1680597103700226049" target="_blank" rel="noopener">tweet</a>.

'Shark Tank' star Kevin O'Leary slams Bidenomics as 'bad policy' that only helps big companies while crushing small businesses

The Indian government was thinking to reset the interest rates on small savings schemes for the upcoming quarter, but because of several protests from individuals who depend on PPFs and post office deposits to meet their financial needs, the decision has been put on a hold. 
 The government had moved to rates linked to the market for small savings products like <keyword id="76579" type="CITY" weightage="100" keywordseo="PPF">PPF</keyword>, KVPs and Senior Citizens Savings Scheme, so that the returns can be linked to government bonds in order to avoid these instruments eating into the bank deposit base. 
 
RBI had also demanded this, so that it could help lenders cut rates when deposit rates were lowered. This is why the centre decided to reset interest rates every quarter, which were earlier done annually. 
 The ongoing quarter has seen the average yield on government securities coming down to around 7.5%; this would have resulted in <keyword id="3248275" type="UNKNOWN" weightage="100" keywordseo="PPF-rates">PPF rates</keyword> falling to less than 8% as against the present 8.1%. 
 
However, as of now, the government has decided not to change these rates, because inflation is already troubling Indian customers. 
 
<a href="http://financialtribune.com/sites/default/files/field/image/06_Brief_0.jpg">Image source</a>

Interest rates for PPF might stay unchanged in the next quarter

As the government is set to announce a slew of reforms, one of them may not attract you much. 
 The government plans to lower down <keyword id="6371181" type="UNKNOWN" weightage="20" keywordseo="interest-rates">interest rates</keyword> on saving products like <keyword id="76579" type="CITY" weightage="20" keywordseo="PPF">PPF</keyword>, National <keyword id="25450" type="UNKNOWN" weightage="20" keywordseo="savings">Savings</keyword> Certificate (NSC) and the bank FDs may also attract lower interest. 
 
The move by the finance ministry will impact people who take maturity period of less than five years. However, it is speculated that women and senior citizens will b exempted with savings plans like Sukanya Samriddhi Yojana. 
 Meanwhile, the <keyword id="30067" type="ORGANIZATION" weightage="20" keywordseo="RBI">RBI</keyword> wants the banks to follow suit and follow the small savings rate cut with lower fixed deposit rates. 
 RBI says the PPF and other plans gave higher returns as compared to <keyword id="6377620" type="UNKNOWN" weightage="20" keywordseo="fixed-deposits">fixed deposits</keyword>. This has, in turn, forced banks to maintain higher deposit rates.

Soon, you may not get return benefits on your savings

<a href="https://www.gettyimages.com/detail/photo/mature-woman-using-smartphone-in-the-rain-royalty-free-image/1129714068?adppopup=true">Willie B. Thomas/Getty Images</a><ul class="summary-list"><li>Sometimes, what feels right today makes retirement harder tomorrow.</li><li><a href="https://www.businessinsider.com/how-to-protect-money-divorce-2017-1">Getting divorced</a>, taking on consumer debt, and waiting to save until your student loans are paid off are three major reasons <a href="https://www.businessinsider.com/mistakes-not-to-make-with-retirement-savings-from-retirees">retirement savings</a> lag.</li><li>Even though a divorce might be the right decision for you personally, it means you should pay extra attention to your retirement savings so you don't fall behind. </li><li>Keeping consumer debt and waiting to start saving for retirement probably aren't as personal, but they can be just as impactful on your savings.</li><li><a href="https://www.businessinsider.com/personal-finance?hprecirc-bullet">Read more personal finance coverage »</a></li></ul>The choices we make today have a big impact on the options we have tomorrow. There's no instance where that's clearer than in retirement savings. Getting divorced, carrying consumer debt, and waiting until student loans are paid off to start saving for retirement can have a major effect on when you can retire, and how much you'll have to live off when you do.That doesn't mean you're doomed if you've made, or are in the process of making, one or more of these choices. It just means you might have to pay some extra attention to your retirement savings now and in the future to make up for any ground lost.<h2>1. Divorce can destroy your retirement savings</h2>Divorce impacts all facets of your finances, but it can hit your retirement savings especially hard.Retirement accounts can be divided during divorce in some states. They can be <a href="https://www.businessinsider.com/which-states-are-community-property-states-in-divorce">considered community property,</a> or an asset that is split in half upon divorce. No matter which partner did the majority of the saving, your retirement accounts may be divided equally, depending on where you live. Additionally, other expenses can eat away at your ability to save, such as <a href="https://www.businessinsider.com/divorce-advice-money-things-to-know-2019-8">spousal support</a>. After a divorce, it's important to start rebuilding and re-examining your retirement plan as soon as you can. "It's extremely important to start out not with implementing advice, but to start out with analysis," <a href="https://www.businessinsider.com/after-divorce-first-steps-financial-planner-advice">Financial planner Ylisa Sanford</a> previously told Business Insider. "That really needs to be asking yourself, 'What is my new normal? What does my new life look like? And, where do I want to be?'" Once you've done that, she said, you might want to consider <a href="https://www.businessinsider.com/how-to-find-a-financial-planner-where-to-start">finding a financial planner</a> who can help you start to make a plan that works for your new circumstances. <h2>2. Holding onto consumer debt can be costly</h2>While getting out of debt can be tough, it will be even harder to save for retirement with monthly debt payments in the way.Personal finance site Kiplinger and wealth management company Personal Capital <a href="https://www.businessinsider.com/americans-healthcare-costs-investment-performance-debt-prevent-saving">surveyed 850 Americans on the factors keeping them from saving</a> as much as they'd like for retirement. Of those surveyed, 21.3% said that consumer debt - such as credit card debt, medical debt, and auto loans, but not including student loans - have prevented them from reaching their savings goals. Consumer debt comes with high interest rates, which makes it one of the most expensive forms of debt. For example, the average interest rate on a credit card is about 17%. Holding this kind of debt for the long term can make it more difficult to retire when the time comes, which is why you'll want to prioritize paying it off as soon as possible using a strategy like the <a href="https://www.businessinsider.com/how-to-get-out-of-debt-snowball-vs-debt-avalanche">debt snowball or debt avalanche.</a>Financial planner Ryan Cole of Citrine Capital previously told Business Insider that while he generally advises allocating money to pay off debt and save for retirement at the same time, he also recommends <a href="https://www.businessinsider.com/pay-debt-or-save-for-retirement">prioritizing any debt with an interest rate over 9%</a> before saving for retirement. "While it may be tempting to save for retirement while you have high-interest debt, doing so can often do more harm than good," he said.<h2>3. Waiting until your student loans are paid off misses growth opportunities</h2>When set against consumer debt, student loan debt tends to be comparatively cheap. That's why many experts recommend tackling student loan debt and saving for retirement <a href="https://www.businessinsider.com/save-for-retirement-while-paying-off-student-loans">at the same time</a>.Though <a href="https://www.businessinsider.com/how-pay-back-student-loan-debt-options">student loans</a> can eat up a large chunk of an entry-level salary (the average student loan payment in the US in June 2019 was <a href="https://www.businessinsider.com/retirement-savings-if-investing-student-loan-debt-payments-2020-1">$393 per month</a>), it's still important to save what you can for retirement early in your career. Even small amounts can see big growth with the power of <a href="https://www.businessinsider.com/what-is-compound-interest-your-best-friend-or-enemy">compound interest</a>, where the interest you earn then earns interest on itself.Over the many years retirement savings have to grow, compound interest can affect even small amounts. <a href="https://www.businessinsider.com/retirement-savings-start-at-25-vs-35-2019-4">Business Insider's Tanza Loudenback</a> calculated the difference between starting to save for retirement at age 25 and age 35, and found that a 10-year difference makes a big impact - potentially to the tune of tens of thousands of dollars.Generally, the advice is to make the minimum payment on your student loans (if your interest rates aren't too high; otherwise you might <a href="https://www.businessinsider.com/should-i-refinance-student-loans-save-money">consider refinancing for a lower rate</a>), and then save what you can for retirement - allowing you to get the benefit of saving sooner while still chipping away at loans. <ul class="read-more-links"><li>More <a href="https://www.businessinsider.com/category/savings">savings and retirement</a> coverage</li><li><a href="https://www.businessinsider.com/how-to-retire-early-steps-for-early-retirement">How to retire early</a></li><li><a href="https://www.businessinsider.com/best-high-yield-savings-accounts-rates-right-now">The best high-yield savings accounts right now</a></li><li><a href="https://www.businessinsider.com/who-has-the-best-cd-rates-right-now">The banks with the best CD rates</a></li><li><a href="https://www.businessinsider.com/when-to-save-money-in-high-yield-savings">When to save money in high-yield savings</a></li></ul>Personal Finance Insider offers tools and calculators to help you make smart decisions with your money. We do not give investment advice or encourage you to buy or sell stocks or other financial products. What you decide to do with your money is up to you. If you take action based on one of the recommendations listed in the calculator, we get a small share of the revenue from our commerce partners. <h3>NOW WATCH: <a href="https://www.businessinsider.com/puffer-fish-are-not-filled-with-air-2019-11">What's inside a puffer fish</a></h3>

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