Centre hikes interest rates on most small saving schemes for June quarter

Interest rates and PPF interest rates have been kept unchanged at 4 percent and 7.1 percent

March 31, 2023

New interest rates starting next month

The Centre on Friday announced a hike in interest rates of small savings schemes, like senior citizen saving schemes, national saving certificate (NSC), Sukanya Samriddhi Yojana, and monthly income scheme (MIS). The new rates will be effective from April 1, 2023, till June 30, 2023, i.e the first quarter of 2023-24.

However, savings deposit interest rates and PPF interest rates have been kept unchanged at 4 percent and 7.1 percent respectively.

The interest rate of Sukanya Samriddhi Yojana has been significantly hiked to 8 percent from the existing 7.6 percent, while the interest rate of NSC has been hiked from the existing 7 percent to 7.7 percent.

For the senior citizens saving scheme, the interest rate has been hiked from 8 percent to 8.2 percent, while for Kisan Vikas Patra (KVP) it has been increased from 7.2 percent to 7.5 percent. However, the existing KVP interest rate is for a maturity period of 120 months, while the new rate is for KVP maturing in 115 months, a notification issued by the Finance Ministry said.

For MIS, the rate has been hiked from the existing 7.1 percent to 7.4 percent and for a five-year recurring deposit, the interest rate has been raised from 5.8 percent to 6.2 percent.

For a one-year time deposit, the interest rate has been hiked from 6.6 percent to 6.8 percent, while for a two-year time deposit, it has been raised from 6.8 percent to 6.9 percent.

Similarly, for the three-year time deposit scheme, the interest rate has been increased from 6.9 percent to 7 percent; for the five-year time deposit scheme, the interest rate has been hiked from 7 percent to 7.5 percent.

The government revises interest rates of small saving schemes after every quarter.

[With Inputs from IANS]

PGurus is now on Telegram. Click here to join our channel and stay updated with all the latest news and views

For all the latest updates, download PGurus App.