Post Office Fixed Deposit Interest Rates July-September 2023: Will Time Deposit rates increase?

financialexpress.com:

Post Office Fixed Deposit/Time Deposit Interest Rate July-September 2023: The Post Office Fixed Deposit interest rates for the July-September quarter of FY 2023-24 will be announced today (June 30). Post Office Fixed Deposit account holders are hoping for a further hike in the interest rate. However, another hike is less likely as the Post Office Fixed Deposit interest rates for various tenors increased by up to 0.5% in the last quarter.

In the April-June quarter of FY 2023-24, the Post Office Fixed Deposit interest rate was increased up to 7.7% (check rates below for the April-June quarter). The Post Office Fixed Deposit allows investors to deposit any amount. The minimum amount is Rs 1000 and thereafter in multiples of Rs 100.

Deposits up to Rs Rs 1.5 lakh per year in 5-year Post Office Fixed Deposit qualify for tax deduction under Section 80C of the Income Tax Act. The interest earned from Post Office Fixed Deposit deposits is not tax-free.

In the last six months, the Government has increased interest rates for small savings schemes like Senior Citizen Savings Scheme (SCSS), National Savings Certificate (NSC), Sukanya Samriddhi Yojana (SSY) account, Kisan Vikas Patra (KVP), and Post Office deposit schemes like Post Office Time Deposit, Post Office Monthly Income Scheme (POMIS) and Post Office Recurring Deposit (RD). The only scheme for which the interest rate has not been changed is Public Provident Fund (PPF).

Since the Reserve Bank of India (RBI) has paused the repo rate hike, after increasing it by 2.5% since May 2022, there is very little possibility of a further hike in the Post Office Fixed Deposit account interest rate today.

The interest rates of small savings schemes, including Post Office Fixed Deposits,