Small saving schemes: Interest rates of these post office schemes hiked by up to 30 bps for July-September quarter
The interest rate on the Public Provident Fund (PPF) has yet again been kept unchanged at 7.1%. Here is a look at the interest rates on various small savings schemes for the second quarter of FY 2023-24.
InstrumentRates of interest from 01.04.2023 to 30.06.2023 (%)Rates of interest from 01.07.2023 to 30.09.2023 (%)Savings Deposit441 Year Time Deposit6.86.92 Year Time Deposit6.973 Year Time Deposit775 Year Time Deposit7.57.55 Year Recurring Deposit6.26.5Senior Citizen Savings Scheme8.28.2Monthly Income Account Scheme7.47.4National Savings Certificate7.77.7Public Provident Fund Scheme7.17.1Kisan Vikas Patna7.5 (will mature in months)7.5 (will mature in months)Sukanya Samriddhi Account88Source: Finance ministry circular
How interest rates are set for small savings schemesThe interest rates on small savings schemes are reviewed every quarter by the government. The formula to arrive at the interest rates for small savings scheme was given by the Shyamala Gopinath Committee. The committee had suggested that the interest rates of different schemes should be 25-100 bps higher than the yields of the government bonds of similar maturity. Last time interest rates were hiked The government hiked the interest rates of small savings schemes by up to 70 bps for the April-June 2023 quarter. The interest rates of schemes like the Senior Citizen Savings Scheme, Monthly Income Savings Scheme, National Savings Certificate, Kisan Vikas Patra, all post office time deposits and Sukanya Samriddhi Account Scheme have been hiked. The interest rate on the Public Provident Fund (PPF) has yet again been kept unchanged at 7.1%. The Reserve Bank of India (RBI) has been increasing key rates since May 2022. Due to this, banks have been increasing
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