At present, the interest rates on small savings schemes range between four per cent (post office savings deposits) and 8.2 per cent (Senior Citizens Savings Scheme).
New Delhi: Generally, the Central government revises the interest of small savings schemes, including PPF, NSC and KVP, every quarter. And this time, the interest rates will be revised for October-December 2023 at the end of this month — September 29 or September 30. However, ahead of the interest rate revision, an expert closely following the developments told News 18 that going by the G-Sec yields trend, the interest rates on small savings schemes are likely to remain unchanged.
Paras Jasrai, senior analyst at India Ratings & Research, told the news portal that the interest rates on these schemes (small savings schemes) are decided on the previous quarter’s trend of G-Sec (government securities) yield. “The 10-year G-Sec has ranged between 7.0 per cent and 7.2 per cent in the current fiscal so far, and is expected to be around 7.1 per cent-7.2 per cent, as inflation is expected to be in the range of 5-6 per cent post September 2023. So, the interest rates on small savings schemes are likely to be unchanged.”
At present, the interest rates on small savings schemes range between four per cent (post office savings deposits) and 8.2 per cent (Senior Citizens Savings Scheme).
What Are Small Savings Schemes?
In general, the Small Savings Schemes are managed by the Central government to encourage citizens to save regularly. These saving schemes have three categories — savings deposits, social security schemes and monthly income plan.
These saving scheme deposits include 1-3-year time deposits and 5-year recurring deposits. These schemes also include saving certificates such as National Saving Certificates (NSC) and Kisan Vikas Patra (KVP). Social security schemes include Public Provident Fund (PPF), Sukanya Samriddhi Account and Senior Citizens Savings Scheme.
Check the Current Interest Rates of These Small Savings Schemes
Savings Deposit: 4 per cent
1-Year Post Office Time Deposits: 6.9 per cent
2-Year Post Office Time Deposits: 7.0 per cent
3-Year Post Office Time Deposits: 7 per cent
5-Year Post Office Time Deposits: 7.5 per cent
5-Year Recurring Deposits: 6.5 per cent
National Saving Certificates (NSC): 7.7 per cent
Kisan Vikas Patra: 7.5 per cent (will mature in 115 months)
Public Provident Fund: 7.1 per cent
Sukanya Samriddhi Account: 8.0 per cent
Senior Citizens Savings Scheme: 8.2 per cent
Monthly Income Account: 7.4 per cent.
In the last interest rate revision on June 30, 2023, the Centre hiked interest rates on several small savings schemes — 1-year & 2-year post office time deposits and 5-year recurring deposits. Notably, this was the fourth hike since September 2022, when the Centre raised interest rates on some small savings schemes for the October-December 2022 quarter, after keeping it unchanged for nine consecutive quarters — from the second quarter of 2020-21 to the second quarter of 2022-23.