Small financial savings schemes are an excellent instrument for these in search of mounted-revenue devices. These schemes, which embrace public provident fund, nationwide financial savings certificates and put up workplace deposits, are backed by the federal government. Following are the most recent rates of interest on small financial savings schemes:
What Are Small Savings Schemes?
These are financial savings devices managed by the federal government to encourage residents to save lots of recurrently. The small financial savings schemes have three classes — financial savings deposits, social safety schemes and month-to-month revenue plans.
Saving deposits embrace 1-3-12 months time deposits and 5-12 months recurring deposits. These additionally embrace saving certificates corresponding to National Saving Certificates (NSC) and Kisan Vikas Patra. Social safety schemes embrace the Public Provident Fund, Sukanya Samriddhi Account and Senior Citizens Savings Scheme. The month-to-month revenue plan contains the Monthly Income Account.
Latest Interest Rates On Small Savings Schemes:
The rates of interest for the present quarter October-December 2023 are as follows:
Savings Deposit: 4 per cent
1-Year Post Office Time Deposits: 6.9 per cent
2-Year Post Office Time Deposits: 7.0 per cent
3-Year Post Office Time Deposits: 7 per cent
5-Year Post Office Time Deposits: 7.5 per cent
5-Year Recurring Deposits: 6.7 per cent (6.5 per cent earlier)
National Saving Certificates (NSC): 7.7 per cent
Kisan Vikas Patra: 7.5 per cent (will mature in 115 months)
Public Provident Fund: 7.1 per cent
Sukanya Samriddhi Account: 8.0 per cent
Senior Citizens Savings Scheme: 8.2 per cent
Monthly Income Account: 7.4 per cent.
For the October-December 2023 quarter, the federal government has saved the rates of interest unchanged on small financial savings schemes, together with PPF, Sukanya Samriddhi, Senior Citizens Savings Schemes and put up workplace time deposits. Only 5-12 months recurring deposits noticed a hike in rate of interest by 20 foundation factors to six.7 per cent.
Interest charges on small financial savings schemes are reviewed on the finish of each quarter and are determined for the following quarter accordingly. In the final evaluate on June 30, 2023, the federal government hiked rates of interest on a number of small financial savings schemes — 1-12 months & 2-12 months put up workplace time deposits and 5-12 months recurring deposits.
It was the fourth hike since September 2022, when the federal government raised rates of interest on some small financial savings schemes for the October-December 2022 quarter, after retaining it unchanged for 9 consecutive quarters — from the second quarter of 2020-21 to the second quarter of 2022-23.
