Govt hikes interest rates of small savings schemes by up to 70 basis points for April-June quarter

The Government has raised interest rates on most post office saving schemes for the April-June 2023 quarter. 

An office memorandum issued by the Department of Economic Affairs in the Finance Ministry said, the highest increase is in the interest rate of the National Savings Certificate NSC which will now attract 7.7 per cent up from 7 per cent.

The new rate for the girl child savings scheme Sukanya Samriddhi has been increased to 8 per cent from 7.6 per cent.

The interest rates for PPF and savings deposits have been retained at 7.1 per cent and 4 per cent.

The interest rate on the senior citizen savings scheme is 8.2 per cent up from 8 per cent and Kisan Vikas Patra KVP is 7.5 per cent up from 7.2 per cent.

KVP will now mature in 115 months as against 120 months earlier.

A one-year term deposit with post offices would earn 6.8 per cent up from 6.6 per cent. For a two-year term deposit, it will be 6.9 per cent which was earlier 6.8 per cent.

For a three-year term deposit, it will be 7 per cent, up from 6.9 per cent. For five years it will be 7.5 per cent which was earlier 7 per cent.

Five-year recurring deposit interest rate which was 5.8 per cent in the last quarter will be 6.2 per cent in the new quarter.

The interest rate on Public Provident Fund PPF has been retained at 7.1 per cent. The interest rate on the savings deposit is also retained at 4 per cent.

Interest rates on Monthly Income Scheme have been increased to 7.4 per cent from 7.1 per cent.

The Interest rates were increased in the last quarter as well. Interest rates for small savings schemes are notified quarterly.