Small Savings Scheme Interest Rates Hiked For July-September Quarter, Check Latest Rates Here

The interest rates for small savings schemes have been revised for the July-September quarter, with an increase in rates for some schemes while others remain unchanged. The Ministry of Finance announced the new rates, providing relief to investors who rely on these schemes for secure and stable returns on their investments.

This information was released on June 30, 2023, via a circular from the finance ministry. (One percentage point is equal to 100 basis points.) The interest rates on programmes like the 1- and 2-year post office time deposits and the 5-year recurring deposits have increased.

The Public Provident Fund (PPF) interest rate has once again remained constant at 7.1%.

Here are the revised rates offered by small savings schemes for July-September 2023 quarter:

Savings Scheme					Interest rate
Post Office Savings Account					4.00%
Post Office Recurring Deposit					6.50%
Post Office Monthly Income Scheme					7.40%
Post Office Time Deposit (1 year)					6.90%
Post Office Time Deposit (2 year)					7%
Post Office Time Deposit (3 year)					7%
Post Office Time Deposit (5 year)					7.50%
Kisan Vikas Patra (KVP)					7.50%
Public Provident Fund (PPF)					7.10%
Sukanya Samriddhi Yojana					8%
National Savings Certificate					7.70%
Senior Citizens' Saving Scheme (SCSS					8.20%

The government recently increased rates for the majority of modest savings interest rates by up to 70 basis points (bps) for the quarter between April and June 2023.

For the April-June 2023 quarter, the government increased the interest rates on small savings plans by up to 70 basis points. Interest rates have increased for programmes like the Sukanya Samriddhi Account Scheme, Monthly Income Savings Scheme, National Savings Certificate, Kisan Vikas Patra, Senior Citizen Savings Scheme, and all post office time deposits. The Public Provident Fund (PPF) interest rate has once again remained constant at 7.1%.

Since May 2022, the Reserve Bank of India (RBI) has started raising key rates. Banks have been raising interest rates on fixed deposits (FD) as a result, which is excellent news for FD investors who have been stuck with decadal-low interest rates. The RBI has, however, slammed the pause button and maintained the status quo on rates since the last two policy meetings.

As a result, many banks have been cautious in raising FD rates.

The government recently announced that Mahila Samman Savings Certificate accounts can now be opened in all public sector banks and in specific private institutions, much like other small savings programmes. The Mahila Samman Savings Certificate investment option will also be available in private banks including ICICI, Axis, HDFC, and IDBI Bank, the Ministry of Finance announced via a gazette notification.

Earlier in April, 1.59 lakh post offices began offering the Mahila Samman Savings Certificates. The Finance Minister introduced the programme at the introduction of the Union Budget for 2023-2024 in honour of "Azadi Ka Amrit Mahotsav." Its goals include financial inclusion and the empowerment of women, including girls.