The Ministry of Finance, Department of Economic Affairs, Budget Division, Government of India, has released an office memorandum on the revision of interest rates for Small Savings Schemes. The revised rates will be applicable for the period from July 1st to September 30th, 2023. This article presents an analysis of the updated interest rates for each scheme, providing valuable information to individuals interested in investing in Small Savings Schemes.
Analysis:
- Savings Deposit: The interest rate for the Savings Deposit remains unchanged at 4.0% from the previous quarter.
- Time Deposits: The interest rates for Time Deposits have been revised as follows:
- 1 Year Time Deposit: Increased from 6.8% to 6.9%
- 2 Year Time Deposit: Increased from 6.9% to 7.0%
- 3 Year Time Deposit: Remains unchanged at 7.0%
- 5 Year Time Deposit: Maintained at 7.5%
- Recurring Deposit: The interest rate for the 5 Year Recurring Deposit has been revised from 6.2% to 6.5%.
- Senior Citizen Savings Scheme: The interest rate for the Senior Citizen Savings Scheme remains unchanged at 8.2%.
- Monthly Income Account Scheme: The interest rate for the Monthly Income Account Scheme remains unchanged at 7.4%.
- National Savings Certificate: The interest rate for the National Savings Certificate remains unchanged at 7.7%.
- Public Provident Fund Scheme: The interest rate for the Public Provident Fund Scheme remains unchanged at 7.1%.
- Kisan Vikas Patra: The interest rate for Kisan Vikas Patra remains unchanged at 7.5%. The maturity period for Kisan Vikas Patra is set at 115 months.
- Sukanya Samriddhi Account Scheme: The interest rate for the Sukanya Samriddhi Account Scheme remains unchanged at 8.0%.
Conclusion: The Government of India has revised the interest rates for Small Savings Schemes for the period from July 1st to September 30th, 2023. The changes in interest rates for various schemes indicate a balanced approach to promote savings and investment. Investors should take note of the updated rates while considering their investment options. It is essential to stay informed about the latest interest rates for Small Savings Schemes to make informed financial decisions.
F.No.1/4/2019-NS
Government of India
Ministry of Finance
Department of Economic Affairs
(Budget Division)
North Block, New Delhi
Dated: 30.06.2023
OFFICE MEMORANDUM
Subject: Revision of interest rates for Small Savings Schemes – reg.
The rates of interest on various Small Savings Schemes for the second quarter of financial year 2023-24 starting from 1st July, 2023 and ending on 30th September, 2023 have been revised as detailed below:
| Instrument | Rates of interest from 01.04.2023 to 30.06.2023 | Rates of interest from 01.07.2023 to 30.09.2023 |
| Savings Deposit | 4.0 | 4.0 |
| 1 Year Time Deposit | 6.8 | 6.9 |
| 2 Year Time Deposit | 6.9 | 7.0 |
| 3 Year Time Deposit | 7.0 | 7.0 |
| 5 Year Time Deposit | 7.5 | 7.5 |
| 5 Year Recurring Deposit | 6.2 | 6.5 |
| 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 Patra | 7.5 (will mature in 115 months) | 7.5 (will mature in 115 months) |
| Sukanya Samriddhi Account Scheme |
8.0 | 8.0 |
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.
| Period | Interest rates of small saving schemes – Post Link |
| April 23 to June 23 | Interest rates for Small Savings Schemes PPF NSC etc. increased |
| Jan 23 to Mar 23 | Interest rates of small saving schemes for January 23 to March 23 |
| Oct 22 to Dec 22 | Interest rates of small saving schemes for October 22 to December 22 |
| Jul 22 to Sep 22 | Interest rates of small saving schemes for July 22 to September 22 |
| Apr 22 to Jun 22 | Interest rates of small saving schemes for April 22 to June 22 |
| Jan 22 to Mar 22 | Interest rates of small saving schemes for Jan 22 to Mar 22 |
| Oct 21 to Dec 21 | Interest Rate on Small Savings Schemes for Oct 21 to Dec 21 |
| July 21 to Sep 21 | Interest Rates for National (Small) Savings Schemes w.e.f. 01.07.2021 |
