Govt hikes interest rates on Senior Citizen Savings Scheme, NSC, others — all details here

The Narendra Modi government on Friday, December 30, raised interest rates on some small savings schemes from January 1, 2023. These schemes include the Post Office term deposits, Senior Citizen Savings Scheme, Monthly Income Account Scheme, National Savings Certificate (NSC) and Kisan Vikas Patra.

However, the government hasn’t changed the interest rates for the popular Public Provident Fund and Sukanya Samriddhi schemes.

The interest rate of the Senior Citizen Savings Scheme has been hiked to 8 percent from 7.6 percent and Kisan Vikas Patra has been increased to 7.2 percent from 7 percent. With regard to Kisan Vikas Patra, the government has revised tenures also.

The interest rate of post office time deposit with a tenure of five years has been raised to 7 percent from 6.7 percent; tenure of three years to 6.9 percent from 5.8 percent; tenure of two years to 6.8 percent from 5.7 percent and tenure of one year to 6.6 percent from 5.5 percent.

For the Monthly Income Scheme, investors can now earn an interest of 7.1 percent as compared to the existing 6.7 percent.

The interest rates of popular schemes like the Public Provident Fund and Sukanya Samriddhi Yojana will continue to be 7.1 percent and 7.6 percent, respectively, in the January-March quarter of this fiscal.