New Delhi: The Center raised interest rates on several small savings schemes (SSS) for the second quarter of 2023. Interest rates on 1-year and 2-year post office fixed deposits were increased by 10 bps each to 6.9 per cent and 7.0 per cent, respectively. The rate on 5-year recurring deposit was increased by 30 bps to 6.5 per cent, according to an official statement. At the same time, the interest rates on other schemes remain the same.
The interest rates on various small savings schemes have been revised for the second quarter of the financial year 2023-24 beginning July 1, 2023 and ending September 30, 2023, the Union Finance Ministry said in a memorandum. Friday.
Revised rates on SSS for the June quarter of 2023:
Savings Deposit: 4 percent (unchanged)
1-year post office fixed deposit: 6.9 per cent (earlier, was 6.8 per cent)
2-year post office fixed deposit: 7.0 percent (earlier, was 6.9 percent)
3-year post office fixed deposit: 7 percent (unchanged)
5-year post office fixed deposit: 7.5 per cent (unchanged)
National Savings Certificate (NSC): 7.7 per cent (unchanged)
Kisan Vikas Patra: 7.5 percent which matures in 115 months (remains unchanged with maturity period)
Public Provident Fund: 7.1 per cent (unchanged)
Sukanya Samriddhi Account: 8 percent (unchanged)
Senior Citizen Savings Scheme: 8.2 percent (unchanged)
Monthly Income Account: 7.4 percent (unchanged)
What is SSS?
Small savings schemes are a type of savings instrument regulated by the central government to encourage citizens to save a portion of their income at regular intervals.
The attractive feature of these schemes is that they not only offer higher and better returns than bank fixed deposits but also provide sovereign guarantee along with tax benefits.