Government raises interest rates on select small saving schemes by up to 0.3%

The government on June 30 raised interest rates on select saving schemes by up to 0.3% for the July-September quarter in line with the high-interest rates in the banking system. The highest increase of 0.3% was for the five-year recurring deposit (RD). During the second quarter of the current fiscal, RD holders would get 6.5% against the existing 6.2%, as per the finance ministry notification.

The government on June 30 raised interest rates on select saving schemes by up to 0.3% for the July-September quarter in line with the high-interest rates in the banking system.

The highest increase of 0.3% was for the five-year recurring deposit (RD). During the second quarter of the current fiscal, RD holders would get 6.5% against the existing 6.2%, as per the finance ministry notification.

With the revision, a one-year term deposit with post offices will now earn 0.1 percentage higher point at 6.9% and for the two years tenor — 7% (up from 6.9%).

However, interest rates on term deposits for three years and five years have been retained at 7% and 7.%. The interest rates for popular PPF and savings deposits are retained at 7.1% and 4%, respectively.

The interest rate on the National Savings Certificate (NSC) remained unchanged at 7.7% for July 1 to September 30, 2023, period.

The new rate for the girl child savings scheme Sukanya Samriddhi too stood at the existing level of 8%.

The interest rate on the senior citizen savings scheme and Kisan Vikas Patra (KVP) is 8.2% and 7.5%, respectively.