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The Department of Economic Affairs, Ministry of Finance has announced the revised interest rates on the Post Office Small Savings Schemes for the first quarter of the Financial Year 2023-24.
Thankfully, there is a sharp increase in the rates of most the schemes. The only disappointment is the PPF — a very popular investment among Indians — where the rate remains unchanged.
This will definitely bring smiles to the investors in Small Savings Schemes, They have been suffering a steep increase in their monthly household budgets on account of inflation; besides the massive jump in the home loan EMIs due to rising interest rates on loans.
The decision to raise the interest rates was notified vide Office Memorandum F.No.1/4/2019-NS dated March 31, 2023 on the subject 'Revision of interest rates for Small Savings Schemes'.
(By now you would surely be aware that, as per the present policy, interest rates on Small Savings Schemes are reset periodically on a quarterly basis.)
Accordingly, the interest rates on various Post Office Small Savings Schemes for the first quarter of the Financial Year 2023-24 — i.e. Apr 1st to Jun 30th, 2023 — are detailed below:
Public Provident Fund (PPF): Unchanged at 7.1% p.a. [compounded annually]
5-year National Saving Certificate (NSC): Up from 7.0% to 7.7% p.a. [compounded annually]
Monthly Income Scheme: Up from 7.1% to 7.4% p.a. [monthly compounding and paid out]
Senior Citizens Savings Scheme: Up from 8.0% to 8.2% p.a. [quarterly compounding and paid out]
Time Deposits
1-year Deposit: Up from 6.6% p.a. to 6.8% p.a.
2-year Deposit: Up from 6.8% p.a. to 6.9% p.a.
3-year Deposit: Up from 6.9% p.a. to 7.0% p.a.
5-year Deposit: Up from 7.0% p.a. to 7.5% p.a.
(All on quarterly compounding basis)
5-year Recurring Deposit: Up from 5.8% p.a. to 6.2% [compounded quarterly]
Kisan Vikas Patra: Up from 7.2% p.a. to 7.5% p.a. [compounded annually]
(The scheme will now double your money in 9 years 7 months, as against 10 years earlier)
Sukanya Samriddhi Scheme: Up from 7.6% p.a. to 8.0% [compounded annually]
Savings Deposit: No change at 4% p.a. [compounded annually]
Note:
1. The revised interest rates apply only to the "new accounts" opened during the respective period (except PPF and Sukanya Samriddhi Scheme, where the new rate is applied on the outstanding account balance).
2. For the existing accounts under all other schemes, the contracted interest rate remains unchanged until maturity.