Small Savings Scheme Interest Rate July -September 2023
The government has announced a marginal increase in interest rates on select small savings schemes for the period of July to September 2023. The rate hike ranges from 10 to 30 basis points (bps) across different schemes.
The 1-year and 2-year time deposit scheme will see an increase of 10 bps, while the 5-year recurring deposit schemes will see a rise of 30 bps under the revised rates.
The interest rate on the 1-year deposit scheme has been hiked to 6.9 per cent, and 7 per cent for the 2-year deposit scheme.
Also, the interest rate on the 5-year recurring deposit has been increased to 6.5 per cent.
The interest rates for most of the popular schemes such as the Public Provident Fund (7.1 per cent), National Savings Certificate (7.7 per cent), Kisan Vikas Patra (7.5 per cent), Senior Citizen Savings Scheme ( 8.2 per cent), and Sukanya Samridhhi Account Scheme (8 per cent) stands unchanged.
These new interest rates are applicable from July 1.
Small savings schemes offered by the government are popular among retail investors due to their secure nature and comparatively higher interest rates compared to other investment options.
These schemes are designed to cater to the diverse needs of different sections of society, including senior citizens, children, and low-income individuals.
In the last two quarters, the government had increased interest rates on popular schemes like the Sukanya Samriddhi Account Scheme, Senior Citizen Savings Scheme, National Savings Certificate, Kisan Vikas Patra, Monthly Income Savings Scheme and all post office time deposits.