The government has hiked the interest rates of small savings schemes by up to 70 basis points (bps) for the April-June 2023 quarter. The interest rates of schemes like the Senior Citizen Savings Scheme (SCSS), Monthly Income Savings Scheme (MIS), National Savings Certificate (NSC), Kisan Vikas Patra (KVP), time deposits and Sukanya Samriddhi Account Scheme (SCSS) have been hiked. The government has, however, kept the rate of Public Provident Fund (PPF) unchanged at 7.1 percent.
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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 rate on one-year deposits and the senior citizen savings scheme has been raised by 20 bps each, while the interest rate on two and three-year deposits has been hiked by 10 bps each.
The interest rate on savings deposits will remain unchanged at 4 percent.
Here are the latest rates offered by small savings schemes:
| Savings Scheme | Interest rate |
| Post Office Savings Account | 4.00% |
| Post Office Recurring Deposit | 5.80% |
| Post Office Monthly Income Scheme | 7.4% |
| Post Office Time Deposit (1 year) | 6.9% |
| Post Office Time Deposit (2 year) | 6.8% |
| Post Office Time Deposit (3 year) | 7% |
| Post Office Time Deposit (5 year)* | 7% |
| Kisan Vikas Patra (KVP) | 7.5% |
| Public Provident Fund (PPF) | 7.1% |
| Sukanya Samriddhi Yojana | 8% |
| National Savings Certificate | 7.7% |
| Senior Citizens’ Saving Scheme (SCSS) | 8.2% |
The interest rates on small savings schemes are reviewed every quarter by the government.
Meanwhile, small savings schemes are likely to get a major lift from April 1 as the government has also made some changes to the existing plans and introduced a fresh one. While the maximum deposit limit for Senior Citizen Savings Scheme (SCSS) has been hiked to Rs 30 lakh, the maximum deposit limit for Monthly Income Scheme (MIS) has been enhanced from Rs 4.5 lakh to Rs 9 lakh for a single account and from Rs 9 lakh to Rs 15 lakh for a joint account.
The government is also launching a one-time new small savings scheme — the Mahila Samman Bachat Patra — from April 1.
First Published: Mar 31, 2023 5:40 PM IST
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