Updated: October 10, 2018, 3:22 PM IST
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Which will benefit from this-Increasing interest rates of SDS will help in obtaining additional profit (non-government) in the non-official PF, pension and gratuity funds. Employees investing in these funds or beneficiaries will benefit from it for a longer period. However, they have to adhere to the investment guidelines set by the government. It is clear that now the job seekers will get more profits on gratuity. (Read also – Start in just Rs 100, this post office scheme will get more profit than savings account)
What is SDAC – The Central Government started special deposit schemes i.e. SDS on July 1, 1975. The purpose of this scheme was to provide better returns from non-governmental PF, pension and gratuity fund, surplus fund of life insurance corporation (LIC) and employee state insurance etc. When these institutions deposit money in the SDS, then the government pays interest on the amount invested in it. (Read also – Government increased interest rates on PPF, NSC and Sukanya Yojana, now get more profits)Increased interest rates- The interest rate for the quarter ending March 31, 2018 was 7.6 percent. In the June and September quarters, they were kept at 7.6 percent. The government has now increased the rates to 8 percent.