Interest Rate on Small Saving Scheme: Before 31 December 2023, the government can revise the interest rate on Small Saving Scheme. It is expected that the government may increase interest on small savings schemes. Small saving schemes include Post Office Saving Scheme, Post Office Recurring Deposit, PPF, NSC, KVP etc.
Interest Rate on Small Saving Scheme: Before 31 December 2023, the government can revise the interest rate on Small Saving Scheme. It is expected that the government may increase interest on small savings schemes. Small saving schemes include Post Office Saving Scheme, Post Office Recurring Deposit, PPF, NSC, KVP etc. The government will decide the interest rates for January-March 2024. The government had recently increased the interest on 5 year Post Office RD (Recurring Deposit).
How does the government decide the interest on small savings schemes?
Interest rates in small savings schemes depend on the yield on government securities of the previous quarter. 10 year government securities are giving yields ranging from 7 percent to 7.2 percent. It is expected to be between 7.1 percent to 7.2 percent. Inflation rate is also expected to be between 5 to 6 percent. In such a situation, changes can be expected in the small savings scheme.
Currently, these are the interest rates on small savings schemes
- 1 year Post Office FD: 6.9 percent
- 2 year post office FD: 7 percent
- 3 year post office FD: 7 percent
- 5 year post office FD: 7.5 percent
- 5 year RD (Post Office RD): 6.7 percent (earlier the interest was 6.5 percent)
- National Savings Certificate (NSC): 7.7 percent
- Kisan Vikas Patra (KVP): 7.5 percent (mature in 115 months)
- PPF – 7.1 percent
- Sukanya Samridhi Account (Sukanya Samridhi Yojana): 8.0 percent
- Senior Citizen Saving Scheme: 8.2 percent
- Monthly Income Scheme (Post Office Monthly Scheme): 7.4 percent
These are the current interest rates on small savings schemes
Interest rates on small savings schemes range from 4 percent to 8.2 percent per annum. The government is paying interest at the rate of 7.1 percent per annum on PPF. At present the interest on small savings scheme is almost equal to that of FD.
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