Government hikes interest rates on some small savings schemes for July-September

By India Today Business Desk: The government on Friday announced a marginal increase in interest rates on select small savings schemes for the period of July to September. The rate hike ranges from 10 to 30 basis points (bps) across various schemes.

Under the revised rates, the 1-year and 2-year time deposit scheme will see an increase of 10 bps, while the 5-year recurring deposit schemes will witness a rise of 30 bps.

The interest rate on the 1-year deposit scheme has been hiked to 6.9 per cent, while the 2-year deposit scheme has been hiked to 7 per cent.

Meanwhile, the interest rate on the 5-year recurring deposit has been hiked to 6.5 per cent.

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However, the rates for popular schemes such as the Public Provident Fund (7.1 per cent), National Savings Certificate (7.7 per cent), Kisan Vikas Patra (7.5 per cent), Senior Citizen Savings Scheme ( 8.2 per cent), and Sukanya Samridhhi Account Scheme (8 per cent) remain unchanged.

The new rates will be applicable from July 1.

Small savings schemes offered by the government are popular among retail investors due to their secure nature and comparatively higher interest rates compared to other investment options.

These schemes are designed to cater to the diverse needs of different sections of society, including senior citizens, children, and low-income individuals.

The fresh interest rate increases on select small savings schemes are lower in comparison to the earlier quarter when the government had announced up to 70 bps hikes.

In the last two quarters, the government increased interest rates on popular schemes like 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.

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