The Government has announced the revised interest rates for small saving schemes for the Q3 of FY 2023-24 (Oct’23-Dec’23). As per the notification, interest rates have been increased in respect of investments in 5 Year Recurring Deposits only, which will now earn 6.7% p.a. interest, up from 6.5% applicable in the previous quarter.
However, interest rates for all other small saving schemes like Savings Deposits, Time Deposits, Senior Citizen Savings Scheme, Monthly Income Scheme, National Savings Certificate, Public Provident Fund, Kisan Vikas Patra and Sukanya Samriddhi Account remain the same or unchanged compared to the second quarter of FY 2023-24.
The revised interest rates are applicable for investments in small saving schemes made during the period 1st October 2023 to 31st December 2023. The quarterly revision of rates is done to align small saving interest rates with current market yields on government securities of similar maturity periods.
Q3 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 Q3 of FY 2023-24 (01/10/2023 to 31/12/2023), are as under:
i) Sukanya Samriddhi Account Scheme (SSAS): 8.0% (no change);
ii) Public Provident Fund (PPF): 7.1% (no change);
iii) Senior Citizen Savings Scheme (SCSS): 8.2% (no change);
iv) Kisan Vikas Patra (KVP): 7.5% (no change);
v) National Savings Certificate (NSC): 7.7% (no change);
vi) Post office MIS (Monthly Income Scheme): 7.4% (no change);
vii) Post Office 5 Year Recurring Deposit (RD): increase from 6.5% to 6.7%;
viii) Savings Bank Deposits: 4% (no Change); and
ix) Post Office Time Deposit:
a) one year term: 6.9% (no change);
b) two year term: 7.0% (no change);
c) three year term: 7.0% (no change); &
d) five year term: 7.5% (no change).
| Instruments | Interest Rates (Q2 of FY 2023-24) | Interest Rates (Q3 of FY 2023-24) | Compounding |
| Savings Bank Deposit (SB) | 4.0 | 4.0 | Annual |
| 1 Year Time Deposit (TD) | 6.9 | 6.9 | Quarterly |
| 2 Year Time Deposit (TD) | 7.0 | 7.0 | Quarterly |
| 3 Year Time Deposit (TD) | 7.0 | 7.0 | Quarterly |
| 5 Year Time Deposit (TD) | 7.5 | 7.5 | Quarterly |
| 5 Year PO Recurring Deposit (RD) | 6.5 | 6.7 | Quarterly |
| 5 Year Senior Citizens Savings Scheme (SCSS) | 8.2 | 8.2 | Paid Quarterly |
| 5 year Monthly Income Scheme (MIS) | 7.4 | 7.4 | Paid Monthly |
| 5 Year National Savings Certificate (NSC) | 7.7 | 7.7 | Annual |
| Public Provident Fund (PPF) Scheme | 7.1 | 7.1 | Annual |
| Kisan Vikas Patra (KVP) | 7.5* | 7.5* | Annual |
| Sukanya Samriddhi Account Scheme (SSAS) | 8.0 | 8.0 | Annual |
* will mature in 115 months (Q1, Q2 & Q3).
GoI Notification dated 29/09/2023: Revised/Increase Interest Rates for Small Savings Schemes for Q3 of FY 2023-24 (01/10/2023 to 31/12/2023)
Conclusion
For investors who want to receive assured returns on their investments, small savings schemes are a safe and dependable choice. These schemes are more appealing and competitive than other investment options on the market, as per general perception and higher interest rates. In order to make an informed investment selection, it is also critical to maintain track of the latest interest rates and consulting an expert.
Related Posts:
Summary of GOI Notifications on Quarterly Changes in Interest Rates of Small Saving Schemes