Now, these rates are supposed to be formula-based. Essentially, the G-Sec (government security, aka government bond) yield plus spread. (View Highlight)
With the status quo maintained, the gap there remains quite wide—instead of about 7.7%, the PPF only offers 7.1%, and the SSA only 7.6% against the formula-rate of 8.2%. (View Highlight)
S mall savings schemes can be variable-rate or fixed-rate products. The PPF and the SSA are of the former variety, where the rates applicable on the investment keep changing throughout the tenure. So, new rates announced for each quarter will apply to the accumulated corpus until then. (View Highlight)
In fixed-rate products—such as NSC, SCSS, Kisan Vikas Patra (KVP), post office monthly income scheme and post office time deposits—the rate at the start of the investment stays the same until maturity. The new rates announced each quarter apply only to investments made in that quarter. (View Highlight)
Take the most recent one that came out on Wednesday. The NPCI has announced that Non Resident Indians (NRI)—in Singapore, Australia, United Kingdom, and eight other nations—can now link their international phone numbers to their NRE/NRO accounts in India, and make payments in the country. (A Non Resident External and Non Resident Ordinary are both types of bank accounts that can be opened in the name of an NRI. But with an NRE, you can park foreign earnings. An NRO is for managing income earned in India in the form of rent, dividend, pension, interest, etc.) (View Highlight)
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