Bank FD Vs Small Savings Schemes: The government recently announced interest rates on small savings schemes. The government did not make any change in the interest rates on PPF, Senior Citizen Saving Scheme, Sukanya Samriddhi Yojana and most of the post office schemes.
This time the government has increased the interest rate on 5 year RD (Recurring Deposit) by 0.20 percent. Interest on five-year recurring deposits will now be 6.7 percent instead of 6.5 percent. There is little hope of change in the repo rate even in the MPC meeting of RBI.
The Finance Ministry has said in the notification that it has revised the interest rates on small savings schemes for the quarter starting from October 1, 2023 and ending December 31, 2023.
Interest rates on small savings scheme for October-December 2023
- Post Office Saving Account: 4 percent
- 1 year post office FD: 6.9 percent
- 2 year post office FD: 7.0 percent
- 3 year post office FD: 7 percent
- 5 year post office FD: 7.5 percent
- 5-year RD: 6.7 percent (earlier 6.5 percent)
- National Savings Certificate (NSC): 7.7 percent
- Kisan Vikas Patra: 7.5 percent (mature in 115 months)
- Public Provident Fund: 7.1 percent
- Sukanya Samriddhi Account: 8.0 percent
- Senior Citizen Saving Scheme: 8.2 percent
- Monthly income account: 7.4 percent.
Interest rates on small savings schemes range between 4 percent (Post Office Savings Account) and 8.2 percent (Senior Citizen Saving Scheme).
Inflation rate in india
Inflation rate in August remained more than 6.83 percent. This is slightly more than the fixed limit of inflation. However, this is much lower than its high of 7.44 percent in July. Inflation is high due to rising global crude oil prices and food inflation.
What is Small Saving Scheme?
Small Savings Schemes are government investment schemes run by the government in which guaranteed returns are available. The government decides the interest rate on these. These are of three types. Small saving scheme includes saving scheme, social security and monthly income scheme.
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