Centre raises small savings deposit rates
1 min read 31 Mar 2023, 10:51 PM ISTFor Senior Citizen Savings Schemes interest rate has been raised from 8% to 8.2%, while monthly income schemes will earn 7.4% compared to 7.1% earlier, showed the order
PremiumThe government on Friday raised interest rates on various small savings schemes by 10-70 basis points from 1 April to 30 June. The highest increase is for National Savings Certificates, from 7% in January-June to 7.7%. Five-year time deposits will earn interest of 7.5% from the earlier 7%, while the rate on five-year recurring deposits was raised from 5.8% to 6.2% for the period.
For Senior Citizen Savings Schemes interest rate has been raised from 8% to 8.2%, while monthly income schemes will earn 7.4% compared to 7.1% earlier, showed the order.
Rate for Kisan Vikas Patras was raised from 7.2% to 7.5%. The scheme will now mature in 115 months, compared to the 120 months earlier. There is no change in interest rate on public provident fund deposits, which remains at 7.1%.
Interest rates applicable on Sukanya Samriddhi Account scheme meant for a girl child will fetch 8% for the April to June period, against 7.6% in January-March 2023.
Experts said the increase in interest rates on small savings instrument was expected and it will help in garnering steady deposits in the June quarter. In the budget for FY24, finance minister Nirmala Sitharaman had said she would take steps to make small saving schemes more attractive. She proposed to raise deposit limits for Senior Citizen Savings Schemes from ₹15 lakh to ₹30 lakh, and from ₹4.5 lakh to ₹9 lakh for monthly income scheme single accounts and from ₹9 lakh to ₹15 lakh for joint accounts.
The budget also proposed a new small saving scheme Mahila Samman Savings Certificate, that will be made available for a two-year period up to March 2025.
