Small Saving Interest Rate: Earlier this month, RBI had kept the interest rates unchanged for the fifth consecutive time. Today on Friday, the government will revise the interest rates on small savings schemes like PPF, NSC etc. for January-March 2024. It is expected that the government may increase interest rates.
Small Saving Interest Rate : Earlier this month, RBI had kept the interest rates unchanged for the fifth consecutive time. Today on Friday, the government will revise the interest rates on small savings schemes like PPF, NSC etc. for January-March 2024. It is expected that the government may increase interest rates. Interest rates on small savings schemes like PPF, NSC etc. depend on the market-linked 10-year G-Sec yield. This is why it is expected that the interest rates offered on these schemes may increase.
during September-November 2023 which accounts for the Small Savings Scheme rates for January-March 2024. This yield on 5 year government bonds has increased by 10 basis points. Whereas, the yield on 10-year bonds has increased by 15 basis points. One basis point is one hundredth of one percentage point.
The government also keeps an eye on the country’s liquidity situation and inflation before deciding on the interest rates of small savings schemes. However, interest rates on small savings schemes including PPF, NSC and KVP are reviewed every quarter. Interest rates on small savings schemes range between four per cent (Post Office Savings Deposit) and 8.2 per cent (Senior Citizen 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
