The Small Savings Scheme’s interest rates have been raised by the Central Government ahead of the new year. The Public Provident Fund and Sukanya Samridhi Yojana are the only exceptions to this rule, as their interest rates have not changed. On their fixed deposits (FDs), the post office is offering an interest rate of 6.5-7 percent.
The government has altered the interest rates of these small savings programs before. Only a few savings accounts saw their interest rates rise in September 2022; however, with the exception of the Public Provident Fund and the Sukanya Samridhi Yojana, all accounts have seen increases this time around. The post office’s rates have become more appealing as a result of the rise in interest rates.
The following is a breakdown of the interest rates that will apply to each plan from January to March 2023:
- 1 year time deposit: 6.5 per cent
- 2 year time deposit: 6.8 per cent
- 3 year time deposit: 6.9 per cent
- 5 year time deposit: 7 per cent
- National Savings Certificate: 7 per cent
- Kisan Vikas Patra Yojana: 7.2 per cent
- Public Provident Fund Scheme: 7.1 per cent
- Sukanya Samriddhi Yojana: 7.6 per cent
- Senior Citizen Saving Scheme: 8 per cent
- Monthly Income Scheme: 7.1 per cent
Banks increased rates of FD
Private and public sector banks have also increased their FD rates in response to the Reserve Bank’s increase in the repo rate in 2022. Some nationalized banks are offering interest rates of up to 9%, while others are offering rates of up to 7%. In the past year, the interest rates on FDs issued by PNB, SBI, HDFC, ICICI, BOB, and other financial institutions have all increased.
