"Small Savings Schemes Surge 13.8%, Driven by Sukanya Samriddhi and Senior Citizen’s Scheme.

Banking & Finance

Recent data show small savings schemes have experienced a robust 13.8% annual growth, reaching ₹18.1 lakh crore by February 2024. This surge is largely attributed to the popularity of the Sukanya Samriddhi Yojana and the Senior Citizens Savings Scheme. These schemes offer attractive returns and have attracted significant investor interest. Despite interest rates being linked to government bond yields and needing quarterly adjustments, changes have been infrequent.


      Seven out of the 20 small savings schemes have recorded notable growth rates between 9% and 11% over the past year, contributing to the overall increase.

      These schemes help the government finance its expenditure while promoting regular savings among the public, aligning with broader financial and economic policies.

      Analysts will be watching how upcoming adjustments to interest rates and economic conditions influence the growth of these savings schemes in the future.

 

     


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