Center increased interest rates on these savings schemes including frequency deposits, no change in PPF
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Small Savings Schemes: The central government on Friday increased the interest rate on some savings schemes including frequency deposit (RD) by 0.3 percent for the July-September quarter. This step has been taken amid rising interest rates on deposits in banks. However, there has been no change in the interest rate on Public Provident Fund (PPF), popular among investors, and it has been retained at 7.1 per cent.
Maximum interest increased on 5 years RD
According to the notification issued by the Ministry of Finance, the maximum interest of 0.3 percent has been increased on 5-year frequency deposit ie RD. With this, the frequency deposit holders will get 6.5 percent interest in the second quarter of the current financial year, which was 6.2 percent till now. After the review of interest rates, interest on one-year fixed deposits (FD) in post offices will increase by 0.1 percent to 6.9 percent. At the same time, the interest on two-year term deposits will now be 7.0 percent, which was 6.9 percent till now. However, interest on three-year and five-year term deposits has been retained at 7.0 per cent and 7.5 per cent, respectively.
No change in PPF
At the same time, interest on deposits in PPF has been maintained at 7.1 percent and interest on deposits in savings accounts at 4.0 percent. Interest on National Savings Certificate (NSC) has also been retained at 7.7 percent from July 1 to September 30, 2023. The interest rate on Sukanya Samriddhi Yojana, a savings scheme for girls, is also unchanged at 8.0 percent. Interest on Senior Citizen Savings Scheme and Kisan Vikas Patra will be 8.2 percent and 7.5 percent respectively. Earlier, interest on small savings schemes were increased in the January-March quarter as well as in the April-June quarter. Interest rates on Small Savings Scheme are notified on a quarterly basis.
No change in interest on Monthly Income Scheme
There has been no change in the interest on the Monthly Income Scheme and it will continue to get 7.4 percent interest as before. It is noteworthy that the Reserve Bank of India has increased the policy repo rate by 2.5 percent to 6.5 percent from May last year to bring inflation under control. Due to this, the interest rates on deposits have also increased. However, the central bank has not increased the policy rate in the last two monetary policy reviews.
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