Govt hikes small savings interest rates, others remain unchanged

The interest rate on the national savings certificate has been hiked by 70 basis points (bps), the highest for any instrument in this revision. The interest rates of schemes like the 1-and 2-year post office time deposit, 5-year recurring deposits have been hiked. 

As per the notification issued by the Union Finance Ministry, the government has increased the interest rate for 1-year, 2-year, from 6.8 per cent, 6.9 per cent, in the last quarter to 6.9 per cent, 7.0 per cent, respectively.

The interest rate on the Public Provident Fund (PPF) has yet again been kept unchanged at 7.1 per cent.

Here’s a look at the interest rate of various schemes:

As per the notification issued by the Union Finance Ministry, the government has increased the interest rate for 1-year, 2-year, from 6.8 per cent, 6.9 per cent, in the last quarter to 6.9 per cent, 7.0 per cent, respectively.

The interest rates for Post Office Recurring Deposit has been hiked to 6.5 per cent in the September quarter from 6.2 per cent in the June quarter.

The interest rates for Senior Citizens’ Savings Scheme, Monthly Income Scheme, National Savings Certificate, Kisan Vikas Patra (KVP), Sukanya Samriddhi Yojana have been kept at the same level.

The government is also launching a one-time new small savings scheme — the Mahila Samman Bachat Patra — from April 1.

Mahila Samman Bachat Patra can now be opened in 12 public sector banks and four private sector banks. The scheme was announced in the Union Budget this year, and was only available through post offices.

According to a recent notification by the Finance Ministry, one can apply for a Mahila Samman Savings Certificate, 2023, in all public sector banks and ICICI Bank, Axis Bank, HDFC Bank Ltd and IDBI Bank.

Updated: 30 Jun 2023, 08:54 PM IST