The government has announced an increase of 0.10 percent on 2-year deposits, while an increase of 0.30 percent has been made on 5-year recurring deposits.
Small Savings Scheme Interest Rates: The government has given good news to the citizens investing in Small Savings Scheme Interest rates. The government has increased the interest rate on some schemes for the second quarter of the current financial year. The government has announced an increase of 0.10 percent on 2-year deposits, while an increase of 0.30 percent has been made on 5-year recurring deposits. The government has made this increase for the quarter of July-September.
However, the government has not made any change in the interest rates of PPF (Public Provident Fund), National Saving Certificate, Kisan Vikas Patra, Senior Citizen Saving Scheme and Sukanya Samriddhi Yojana.
According to the notification
of the Ministry of Finance, the maximum interest of 0.3 percent has been increased on five-year recurring deposit (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.
The government reviews the interest rates on small savings schemes every quarter. Last time, the government had announced an increase in interest rates of most small savings schemes by up to 70 basis points (bps) for the April-June 2023 quarter.
Last time interest was increased on NSC
For the first quarter of the current financial year, April-June 2023, there was a change in the interest rate of only one small savings scheme (Small Savings Schemes Interest rate). Then the interest on 5-year National Savings Certificate (NSC) was increased by 0.70 percent to 7.7 percent.
However, this was the third consecutive quarter, when the interest of any of the small savings schemes has been increased. Prior to this change, the highest interest of up to 8.2 per cent was being received on Senior Citizen Savings Schemes (SCSS).
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.
