For the months of July to September, the government on friday announced a slight rise in interest rates on a few minor savings programmes. The rate increase varies across different schemes and ranges from 10 to 30 basis points (bps). The 1-year and 2-year time deposit programmes would increase by 10 basis points under the amended rates, while the 5-year recurring deposit schemes will increase by 30 basis points.
The interest rate for the 1-year deposit plan has increased to 6.9%, while the interest rate for the 2-year deposit plan has increased to 7%. The 5-year recurring deposit's interest rate has increased to 6.5% in the meanwhile. However, the interest rates for well-known programmes like the Public Provident Fund (7.1%), National Savings Certificate (7.7%), Kisan Vikas Patra (7.5%), Senior Citizen Savings Scheme (8.2%), and sukanya Samridhi Account Scheme (8%) stay the same.
Beginning July 1, the new pricing will be in effect. Due to its security and comparably higher return rates as compared to alternative investment options, the government's small savings programmes are well-liked by ordinary investors. These programmes are made to meet the various requirements of many groups in society, including elderly people, kids, and those with limited incomes. In compared to the preceding quarter, when the government had announced up to 70 bps hikes, the new interest rate increases on a few modest savings plans are smaller.
The interest rates on well-known programmes, including the sukanya Samriddhi Account Scheme, Senior Citizen Savings Scheme, National Savings Certificate, Kisan Vikas Patra, Monthly Income Savings Scheme, and all post office time deposits, have increased during the past two quarters.
The interest rates on well-known programmes, including the sukanya Samriddhi Account Scheme, Senior Citizen Savings Scheme, National Savings Certificate, Kisan Vikas Patra, Monthly Income Savings Scheme, and all post office time deposits, have increased during the past two quarters.
