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).