MUMBAI: The government on Friday raised interest rates on select saving schemes by up to 0.3% for the July-September quarter in a bid to align them with high-interest rates in the banking system.
Previously, the rates on these schemes were hiked for the April-June quarter by 0.1-0.7%. As per the notification issued by the Union Finance Ministry, 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 7.5%. 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. There is no increase in interest rate for Monthly Income Scheme, and this will earn 7.4% for the investors.