The government has announced an increase in interest rates on select savings schemes for the July-September quarter. This decision is in line with the high-interest rates in the banking system. The revised rates aim to provide higher returns to investors and encourage savings.
Here are the details of the changes:
Revised Rates for Recurring Deposits (RD):
The highest increase of 0.3 percent has been implemented for the five-year recurring deposit (RD). RD holders will now receive 6.5 percent interest during the second quarter of the current fiscal, compared to the previous 6.2 percent.
Term Deposit Rates:
- One-year term deposits with post offices will now earn 6.9 percent, an increase of 0.1 percentage point.
- Two-year term deposits will earn 7 percent, up from the previous 6.9 percent.
- The interest rates for term deposits with tenors of three years and five years remain unchanged at 7 percent and 7.5 percent, respectively.
Other Savings Schemes:
- The interest rates for the popular Public Provident Fund (PPF) and savings deposits have been retained at 7.1 percent and 4 percent, respectively.
- The interest rate on the National Savings Certificate (NSC) remains unchanged at 7.7 percent for the July-September 2023 period.
- The girl child savings scheme, Sukanya Samriddhi, will continue to offer 8 percent interest.
- The senior citizen savings scheme maintains an interest rate of 8.2 percent, while the Kisan Vikas Patra (KVP) offers 7.5 percent.
Consistency in Interest Rate Changes:
Interest rates on small savings schemes are notified on a quarterly basis. In the last two quarters, interest rates have been increased, reflecting the upward trend in the benchmark lending rate set by the Reserve Bank of India (RBI).
No Change in Monthly Income Scheme:
There is no increase in the interest rate for the Monthly Income Scheme, which will continue to earn 7.4 percent for investors.