On March 31, 2023, the Central Government raised interest rates for a number of small savings programs, including the Senior Citizen Savings Program, Sukanya Samriddhi Account Program, Monthly Income Savings Program, National Savings Certificate, Kisan Vikas Patra, and all post office time deposits for the April–June quarter of the fiscal year 2023–24.
However, the Public Provident Fund is not affected by the increase. Throughout this time, the interest rate for the Public Provident Fund (PPF) scheme has remained unchanged at 7.1% by the government.
In the past nine months, the Center has increased the interest rates on small savings programs three times. Small savings programs currently have interest rates ranging from 4.0 percent to 8.2 percent.
Consider the new interest rates effective as of April 1, 2023:
| Sl. no | Instruments | Rate of Interest April 1, 2023-June 30, 2023 | Compounding frequency |
|---|---|---|---|
| 1 | Post Office Savings Account | 4.00% | Annually |
| 2 | 1-Year Time Deposit | 6.8% | Quarterly |
| 3 | 2-Year Time Deposit | 6.9% | Quarterly |
| 4 | 3-Year Time Deposit | 7.0% | Quarterly |
| 5 | 5-Year Time Deposit | 7.5% | Quarterly |
| 6 | 5-Year Recurring Deposit Scheme | 5.8% | Quarterly |
| 7 | Senior Citizen Savings Scheme | 8.2% | Quarterly and Paid |
| 8 | Monthly Income Account | 7.4% | Monthly and Paid |
| 9 | National Savings Certificate (VIII Issue) | 7.7% | Annually |
| 10 | Kisan Vikas Patra | 7.5 (will mature in 115 months) | Annually |
| 11 | Sukanya Samriddhi Account Scheme | 8.0% | Annually |
