Great news! Government increased the interest rates of Small Savings Schemes, no change in PPF

The Center on Friday raised the interest rate on small savings schemes by 10-30 basis points for the July-September quarter and now ranges from 4 per cent to 8.2 per cent. The change in interest rates was announced today by the Finance Ministry. The government reviews the interest rates on small savings schemes every quarter. The maximum increase of 0.3 per cent was in the five-year recurring deposit. During the second quarter, recurring deposit holders will get 6.5 per cent interest as against the current 6.2 per cent. There has been no change in the interest rate on Public Provident Fund (PPF), popular among investors.

interest rates increased

According to the Finance Ministry statement, those investing in one-year fixed deposits in post offices will get interest at the rate of 0.1 percent more i.e. 6.9 percent and 7 percent for a period of two years. Interest rates on fixed deposits for three years and five years have been retained at 7 per cent and 7.5 per cent. Interest rates on the popular PPF and savings deposits have been retained at 7.1 per cent and 4 per cent, respectively. The interest rate on National Savings Certificates (NSCs) remained unchanged at 7.7 per cent for the period July 1 to September 30, 2023. Interest on Senior Citizen Savings Scheme and Kisan Vikas Patra will be 8.2 percent and 7.5 percent respectively. Interest on National Savings Certificate (NSC) has also been retained at 7.7 per cent for the period from July 1 to September 30, 2023.

increased earlier

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. 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, interest rates on deposits have also increased. Although the central bank has not increased the policy rate in the last two monetary policy reviews.