Interest Rates on Small Savings Schemes Increased: Q1 of FY 2023-24

The Government of India has issued a notification dated 31/03/2023, whereby the interest rates have been increased for certain Small Saving Schemes in respect of Q1 of FY 2023-24 (01/04/2023 to 30/06/2023), as compared to the interest rates applicable in respect of Q4 of FY 2022-23 (01/01/2023 to 31/03/2023).

Q1 of FY 2023-24: Revised Interest Rates for  Small Savings Schemes

Latest interest rates of Small Savings Schemes (NSC, PPF, KVP, SSAS, SCSS, etc.) applicable during Q1 of FY 2023-24 (01/04/2023 to 30/06/2023), are as under:

i) Sukanya Samriddhi Account Scheme (SSAS): Increased from 7.6% to 8.0%;

ii) Public Provident Fund (PPF): 7.1% (No change);

iii) Senior Citizen Savings Scheme (SCSS): Increased from 8.0% to 8.2%;

iv) Kisan Vikas Patra (KVP): Increased from 7.2% to 7.5%;

v) National Savings Certificate (NSC): Increased from 7.0% to 7.7%;

vi) Post office MIS (Monthly Income Scheme): Increased from 7.1% to 7.4%;

vii) Post Office Recurring Deposit (RD): Increased from 5.8% to 6.2%;

viii) Savings Bank Deposits: 4% (No Change); and

ix) Post Office Time Deposit: Increased from 6.6% to 6.8% for one year term, from 6.8% to 6.9% for two year term, from 6.9% to 7.0% for three year term & from 7.0% to 7.5% for five year term.

* will mature in 115 months (Q1).

GoI Notification dated 31/03/2023: Interest Rates increased for Small Savings Schemes (KVP, MIS, NSC, RD, SCSS, SSAS and Term Deposits, i.e. except SB and PPF) for Q1 of FY 2023-24 (01/04/2023 to 30/06/2023)

Q1 of FY 2023-24: Interest Rates under various Savings Schemes/ Instruments

The revised interest rates for Small Savings Schemes (KVP, MIS, NSC, RD, SCSS, SSAS and Term Deposits, i.e. except SB and PPF) applicable during Q1 of FY 2023-24 are as follows:

1. Sukanya Samriddhi Account Scheme (SSAS): Increased

The interest rate for SSAS has been increased from 7.6% to 8.0%. This scheme is specially designed for the benefit of the girl child and is an excellent long-term investment option for parents. The scheme is available at post offices and designated banks.

2. Public Provident Fund (PPF) Scheme: No Change

PPF is a popular long-term investment option that provides both tax benefits and guaranteed returns. The interest rate for PPF remains unchanged at 7.1%.

3. Senior Citizen Savings Scheme (SCSS): Increased

The interest rate for SCSS has been increased from 8.0% to 8.2%. This scheme is designed for senior citizens aged 60 years and above and provides regular income through quarterly interest payouts.

4. Kisan Vikas Patra (KVP): Increased

The interest rate for KVP has been increased from 7.2% to 7.5%. This scheme is a good investment option for individuals who are looking for guaranteed returns on their investment. The scheme has a lock-in period of 2.5 years, and the invested amount doubles on maturity.

5. National Savings Certificate (NSC): Increased

The interest rate for NSC has been increased from 7.0% to 7.7%. This scheme is a government-backed savings scheme that offers guaranteed returns and tax benefits. The scheme has a lock-in period of 5 years.

6. Post office Monthly Income Scheme (MIS): Increased

The interest rate for MIS has been increased from 7.1% to 7.4%. This scheme provides a fixed monthly income to investors and is suitable for individuals looking for regular income.

7. Post Office Recurring Deposit (RD): Increased

The interest rate for RD has been increased from 5.8% to 6.2%. This scheme is a good investment option for individuals who want to save a fixed amount every month and earn a fixed interest rate on their investment.

8. Savings Bank Deposits (SB): No Change

The interest rate for SB remains unchanged at 4%. This scheme is a safe and easy investment option that provides liquidity and regular interest payouts.

9. Post Office Time Deposit (TD): Increased

The interest rate for Post Office TD has been revised as follows:

i) For a one-year term, the interest rate has been increased from 6.6% to 6.8%.

ii) For a two-year term, the interest rate has been increased from 6.8% to 6.9%.

iii) For a three-year term, the interest rate has been increased from 6.9% to 7.0%.

iv) For a five-year term, the interest rate has been increased from 7.0% to 7.5%.

Conclusion

Investing in Small Saving Schemes is a safe and secure way of earning guaranteed returns on investment. The revised interest rates for Q1 of FY 2023-24 have made these schemes more attractive for

investors. Individuals can choose the scheme that best suits their investment needs and goals. The revised interest rates make these schemes more competitive as compared to other investment options available in the market.

It is essential to note that the interest rates on Small Savings Schemes are revised every quarter. Hence, investors should keep themselves updated with the latest interest rates to make an informed investment decision.

In conclusion, Small Savings Schemes are a safe and reliable investment option for individuals who want to earn guaranteed returns on their investment. The revised interest rates for Q1 of FY 2023-24 make these schemes more attractive and competitive as compared to other investment options available in the market. Investors should assess their investment needs and choose the scheme that best suits their goals and objectives. It is also crucial to keep track of the latest interest rates to make an informed investment decision.

Related Posts:

Summary of GOI Notifications on Quarterly Changes in Interest Rates of Small Saving Schemes