Interest Rate on Small Saving Scheme: The government can revise the interest rate on Small Saving Scheme till 30 September. Post Office Saving Scheme, PPF, NSC, KVP etc. come under the count of small saving schemes. Government to fix interest rates on small savings schemes for October-December 2023 quarter
Interest Rate on Small Saving Scheme: The government can revise the interest rate on Small Saving Scheme till 30 September. Post Office Saving Scheme, PPF, NSC, KVP etc. come under the count of small saving schemes. The government will decide the interest rate on small savings schemes for the October-December 2023 quarter. These interest rates depend on the yields of government securities (G-Sec yields). If experts are to be believed, there is little hope of change in interest rates on small savings schemes for the October-December 2023 quarter. The government revises interest rates on small savings schemes at the end of every quarter. It decides the interest rates for the next quarter.
Less expected change in interest
Interest rates in small savings schemes depend on the yield on government securities of the previous quarter. 10 year government securities are giving yields ranging from 7 percent to 7.2 percent. It is expected to be between 7.1 percent to 7.2 percent. Inflation rate is also expected to be between 5 to 6 percent. In such a situation, there is little hope of change in the small savings scheme.
This is the current interest rate
Interest rates on small savings schemes range from 4 percent to 8.2 percent per annum. The government is paying interest at the rate of 7.1 percent per annum on PPF. At present the interest on small savings scheme is almost equal to that of FD. The government last increased interest on small savings schemes on June 30, 2023. Then the government had increased the interest on one year and 2 year post office FD and 5 year RD (Recurring Deposit). The government had changed the interest for the fourth time after September 2022.
Currently, these are the interest rates on small savings schemes
- 1 year Post Office FD: 6.9 percent
- 2 year post office FD: 7 percent
- 3 year post office FD: 7 percent
- 5 year post office FD: 7.5 percent
- 5 year RD (Post Office RD): 6.5 percent
- National Savings Certificate (NSC): 7.7 percent
- Kisan Vikas Patra (KVP): 7.5 percent (mature in 115 months)
- PPF – 7.1 percent
- Sukanya Samridhi Account (Sukanya Samridhi Yojana): 8.0 percent
- Senior Citizen Saving Scheme: 8.2 percent
- Monthly Income Scheme (Post Office Monthly Scheme): 7.4 percent
