Introduction: The Government of India, Ministry of Communications, Department of Posts, issued SB Order No. 23/2023 on 29.12.2023, notifying the revision of interest rates for Small Savings Schemes effective from 01.01.2024. This order impacts various schemes, including Post Office Savings Account, Time Deposits, Senior Citizen Savings Scheme, and more.
Detailed Analysis: The revised interest rates for the fourth quarter of the financial year 2023-24 are outlined in the memorandum dated 29.12.2023. Notable changes include adjustments in rates for Post Office Savings Account, Time Deposits ranging from 1 to 5 years, Recurring Deposit, Senior Citizen Savings Scheme, Monthly Income Account Scheme, Sukanya Samriddhi Account Scheme, Public Provident Fund Scheme, National Savings Certificate, and Kisan Vikas Patra.
The memo provides a comparative table showing the interest rates from the previous quarter (01.10.2023 to 31.12.2023) and the revised rates applicable from 01.01.2024 to 31.03.2024. This information is crucial for investors, financial institutions, and individuals planning to participate in Small Savings Schemes.
Additionally, the article highlights the significance of these changes, potential impacts on savings and investment decisions, and the government’s reasoning behind the revisions. It emphasizes the need for stakeholders to stay informed about such updates for prudent financial planning.
The article also includes the official communication’s details, such as the order number, reference F. No, and the signatory’s designation, ensuring authenticity and credibility of the information.
Conclusion: In conclusion, SB Order No. 23/2023 signifies a pivotal development in the financial landscape, specifically affecting Small Savings Schemes. The revised interest rates, effective from 01.01.2024, bring about adjustments that warrant attention from investors and individuals involved in these schemes. Staying informed about such changes is crucial for making informed financial decisions, and this article aims to provide a comprehensive overview of the revised rates and their implications. Readers are encouraged to analyze the updated rates and consider their financial goals in light of these changes.
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SB Order No. 23 / 2023
F. No 113-03/2017-SB(Pt.1)
Government of India
Ministry of Communications
Department of Posts
(Financial Services Division)
Dak Bhawan, New Delhi – 110001
Dated: 29.12.2023
To
All Head of Circles/Regions
Subject: Revision of interest rates for Small Savings Schemes w.e.f. 01.01.2024
Madam / Sir,
The undersigned is directed to say that, vide memorandum No. 1/4/2019-NS dated 29.12.2023 (copy enclosed), Government of India, Ministry of Finance, Department of Economic Affairs (Budget Division) has informed that the rate of interest on various Small Savings Schemes (National Savings Schemes) for the fourth quarter of financial year 2023-24 (starting from 1st January, 2024 and ending on 31st March, 2024) have been revised as under.
| Sl. No. |
Instrument / Scheme | Rate of Interest from 01.10.2023 to 31.12.2023 |
Rate of Interest from 01.01.2024 to 31.01.2024 |
| 1. | Post Office Savings Account | 4.0 | 4.0 |
| 2. | 1 Year Time Deposit | 6.9 | 6.9 |
| 3. | 2 Year Time Deposit | 7.0 | 7.0 |
| 4. | 3 Year Time Deposit | 7.0 | 7.1 |
| 5. | 5 Year Time Deposit | 7.5 | 7.5 |
| 6. | 5 Year Recurring Deposit | 6.7 | 6.7 |
| 7. | Senior Citizen Savings Scheme | 8.2 | 8.2 |
| 8. | Monthly Income Account Scheme | 7.4 | 7.4 |
| 9. | Sukanya Samriddhi Account Scheme | 8.0 | 8.2 |
| 10. | Public Provident Fund Scheme | 7.1 | 7.1 |
| 11. | National Savings Certificate | 7.7 | 7.7 |
| 12. | Kisan Vikas Patra | 7.5
(will mature in 115 months) |
7.5
(will mature in 115 months) |
2. It is requested to circulate it to all concerned for information and necessary guidance. Same may also be placed on the notice board of all Post Offices in public area. The relevant calculation tables, if any, will be supplied in due course on receipt from the DEA/MoF.
3. This is issued with the approval of the Competent Authority.
(T.C.VIJAYAN)
Assistant Director (SB-I)
Copy to: –
1. Sr. PPS to Secretary (Posts)
2. PS to Director General Postal Services.
3. PPS/ PS to Addl. DG (Co-ordination)/Member (Banking)/Member (0)/Member (P)/ Member (Planning & HRD)/Member (PLI)/Member (Tech)/AS & FA
4. Addl. Director General, APS, New Delhi
5. Chief General Manager, BD Directorate / Parcel Directorate / PLI Directorate / CEPT
6. Deputy Director General (Vig) & CVO) / Sr. Deputy Director General (PAF)
7. Director, RAKNPA / Directors of all PTCs
8. Director General P & T (Audit), Civil Lines, New Delhi
9. Secretary, Postal Services Board / All Deputy Directors General
10. All General Managers (Finance) / Directors Postal Accounts / DDAP
11. The Under Secretary, MOF (DEA), NS-II Section, North Block, New Delhi.
12. The Joint Director & HOD, National Savings Institute, ICCW Building, 4 Deendayal Upadhyay Marg, New Delhi-110002
13. All recognized Federations / Unions / Associations
14. Guard File/e-File.
( T C VIJAYAN)
Assistant Director (SB-I)
F.No.1/4/2019-NS
Government of India
Ministry of Finance
Department of Economic Affairs
(Budget Division)
North Block, New Delhi
Dated: 29.12.2023
OFFICE MEMORANDUM
Subject: Revision of Interest Rates for Small Savings Schemes – reg.
The rates of interest on various Small Savings Schemes for the fourth quarter of financial year 2023-24 starting from 1st January, 2024 and ending on 31st March, 2024 have been revised as detailed below:
| Instrument | Rates of interest from 01.10.2023 to 31.12.2023 | Rates of interest from 01.01.2024 to 31.03.2024 |
| Savings Deposit | 4.0 | 4.0 |
| 1 Year Time Deposit | 6.9 | 6.9 |
| 2 Year Time Deposit | 7.0 | 7.0 |
| 3 Year Time Deposit | 7.0 | 7.1 |
| 5 Year Time Deposit | 7.5 | 7.5 |
| 5 Year Recurring Deposit | .6.7 | 6.7 |
| Senior Citizen Savings Scheme | 8.2 | 8.2 |
| Monthly Income Account Scheme | 7.4 | 7.4 |
| National Savings Certificate | 7.7 | 7.7 |
| Public Provident Fund Scheme | 7.1 | 7.1 |
| Kisan Vikas Para | 7.5 (will mature in 115 months) | 7.5 (will mature in 115months) |
| Sukanya Samriddhi Account Scheme |
8.0 | 8.2 |
2. This has the approval of competent authority.
(Kapil Patidar)
Deputy Secretary (Budget)
Tele – 01123092649
To,
1. The Finance Secretary & Secretary Expenditure, Department of Expenditure North Block, New Delhi.
2. The Secretary, Department of Economic Affairs North Block, New Delhi.
3. The Secretary, Department of Revenue North Block, New Delhi
4. The Secretary, Department of Financial Services Jeevan Deep Building, New Delhi.
5. The Secretary, Department of Posts Dak Bhawan, New Delhi.
6. The Chief General Manager (DGBA) Reserve Bank of India, Central Office, Mumbai.
7. Reserve Bank of India Central Account Section, Additional Office Building, East High Court Road, Civil Lines, P.B. No.15, Nagpur – 440 001.
8. Chief Secretaries of States / UT Government
9. The Joint Director National Savings Institute, New Delhi.
