The Government has effected significant 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 per cent and 7.1 per cent respectively.
The interest rate of Sukanya Samriddhi Yojana has been significantly hiked to 8 per cent from the existing 7.6 per cent, while interest rate of NSC has been hiked from the existing 7 per cent to 7.7 per cent.
For senior citizens saving scheme, the interest rate has been hiked from 8 per cent to 8.2 per cent, while for Kisan Vikas Patra (KVP) it has been increased from 7.2 per cent to 7.5 per cent. 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 per cent 7.4 per cent and for five-year recurring deposit, the interest rate has been raised from the existing 5.8 per cent to 6.2 per cent.
For one-year time deposit, the interest rate has been hiked from 6.6 per cent to 6.8 per cent, while for two-year time deposit, it has been raised from 6.8 per cent to 6.9 per cent.
Similarly, for three-year time deposit scheme, the interest rate has been increased from 6.9 per cent to 7 per cent and for five-year time deposit scheme, the interest rate has been hiked from 7 per cent to 7.5 per cent.
The Government revises interest rates of small saving schemes after every quarter.