The Central Government has increased the interest rates of the Small Savings Scheme before the start of the new year. The exception to this is the Public Provident Fund and Sukanya Samridhi Yojana, which have not had their interest rates changed. The post office is offering an interest rate of 6.5-7 per cent on their fixed deposits (FDs).
This is not the first time the government has changed the interest rates of these small savings schemes. In September 2022, only a few savings schemes had their interest rates increased, but this time all schemes have seen an increase except for the Public Provident Fund and Sukanya Samridhi Yojana. This increase in interest rates has made the post office's rates more attractive.
Here is a breakdown of the interest rates for each scheme for the period of January to March 2023:
1. 1 year time deposit: 6.5 per cent
2. 2 year time deposit: 6.8 per cent
3. 3 year time deposit: 6.9 per cent
4. 5 year time deposit: 7 per cent
5. National Savings Certificate: 7 per cent
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6. Kisan Vikas Patra Yojana: 7.2 per cent
7. Public Provident Fund Scheme: 7.1 per cent
8. Sukanya Samriddhi Yojana: 7.6 per cent
9. Senior Citizen Saving Scheme: 8 per cent
10. Monthly Income Scheme: 7.1 per cent
Banks increased rates of FD
Since the Reserve Bank increased the repo rate in 2022, private and public sector banks have also increased their FD rates. Some banks are offering interest rates up to 7 per cent, while some nationalized banks are offering rates up to 9 per cent. PNB, SBI, HDFC, ICICI, BOB, and other banks have all increased the interest rates on their FDs in the past year.
