The authorities raised the rate of interest on five-year recurring deposit scheme to six.7 per cent from 6.5 per cent for the October-December quarter and retained the charges for all different small financial savings schemes on Friday, September 29. According to a finance ministry round, the rate of interest on financial savings deposit has been retained at 4 per cent and on the one-year time period deposit at 6.9 per cent. The charges have been the identical throughout the July-September quarter.
The rate of interest on each the two-year and three-year time period deposits is 7 per cent whereas on the five-year time period deposit, the speed is 7.5 per cent. Senior residents financial savings scheme will fetch an rate of interest of 8.2 per cent, in response to the round.
On the month-to-month revenue account scheme, the rate of interest is 7.4 per cent whereas it’s 7.7 per cent on the National Savings Certificate and seven.1 per cent on the Public Provident Fund (PPF) scheme. The rate of interest on the Kisan Vikas Patra is 7.5 per cent and the investments will mature in 115 months.
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The interest rate on the popular girl child scheme Sukanya Samriddhi Account has been retained at 8 per cent, according to the circular. The government notifies the interest rate on small savings schemes, majorly operated by post offices, every quarter. Financial experts had widely expected the interest rats to remain unchanged till December.
In the last review on June 30, 2023, the government had hiked interest rates on several small savings schemes — 1-year and 2-year post office time deposits and 5-year recurring deposits.
The government is also launching a one-time new small savings scheme — the Mahila Samman Bachat Patra. The Mahila Samman Bachat Patra can now be opened in 12 public sector banks and four private sector banks. The scheme was announced in the Union Budget this year, and was only available through post offices.
Broadly, small savings schemes have three categories — savings deposits, social security schemes and monthly income plan. The saving deposits include 1-3-year time deposits and 5-year recurring deposits.
These also include saving certificates such as National Saving Certificates (NSC) and Kisan Vikas Patra. Social security schemes include PPF, Sukanya Samriddhi Account and Senior Citizens Savings Scheme.
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Updated: 29 Sep 2023, 05:57 PM IST
