Government Raises Interest Rate on Five-Year Recurring Deposit to 6.7%, Keeps Other Small Savings Schemes Unchanged
29-09-2023 : In a recent development, the government has announced adjustments to the interest rates on certain small savings schemes for the upcoming quarter. Notably, the interest rate on the five-year recurring deposit scheme has been increased to 6.7 percent, up from the previous rate of 6.5 percent, applicable for the December quarter. It is important to highlight that the rates for all other small savings schemes have remained unchanged.
A circular issued by the finance ministry outlines the specifics of these adjustments. The interest rate for savings deposits remains steady at 4 percent, while the one-year term deposit continues to offer an interest rate of 6.9 percent, mirroring the rates observed during the preceding September quarter.
For the two-year and three-year term deposits, the interest rate remains at an enticing 7 percent. Meanwhile, the five-year term deposit scheme continues to be attractive with a rate of 7.5 percent. Senior citizens will be pleased to note that the senior citizens savings scheme offers a substantial interest rate of 8.2 percent.
Other notable rates in small savings schemes include the monthly income account scheme at 7.4 percent, the National Savings Certificate at 7.7 percent, and the Public Provident Fund (PPF) scheme at 7.1 percent.
The Kisan Vikas Patra also retains its appeal with an interest rate of 7.5 percent, and investments made in this scheme mature over a period of 115 months.
For those interested in the girl child scheme, the Sukanya Samriddhi Account continues to provide an attractive interest rate of 8 percent.
It is important to note that the government periodically revises the interest rates on small savings schemes, which are primarily managed by post offices. These revisions typically occur on a quarterly basis, ensuring that investors stay informed about the prevailing rates and can make informed decisions regarding their investments.