The latest chart of interest for small savings instruments for the Q2 (July 1 to September 30) of 2023 are as under.
| Scheme | Rate of interest for July-September 2023 | Rate of interest from April -June 2023 | Interest compounded |
| Savings account | 4.00% | 4.00% | Annual rest |
| 1-year time deposit | 6.90% | 6.80% | Quarterly rest |
| 2-years’ time deposit | 7.00% | 6.90% | Quarterly rest |
| 3-years’ time deposit | 7.00% | 7.00% | Quarterly rest |
| 5-years’ time deposit | 7.50% | 7.50% | Quarterly rest |
| 5-years’ Recurring Deposit | 6.50% | 6.20% | Quarterly rest |
| 5years’ Senior Citizen Saving Scheme(SCSS) | 8.20% | 8.20% | Interest paid quarterly, Quarterly rest |
| 5- years Monthly Income Account Scheme | 7.40% | 7.40% | Interest paid monthly, |
| 5 -years NSC | 7.70% | 7.70% | Annual rest |
| PPF (Public Provident Fund) | 7.10% | 7.10% | Annual rest |
| KVP (Kisan Vikas Patra) | 7.50 %(matures in115 months) | 7.50 %(matures115 months) | Annual rest |
| Sukanya Samriddhi Account Scheme | 8.00% | 8.00% | Annual rest |
The government resets the interest rate at the beginning of every quarter since 2016 based on yields of government securities of the corresponding maturity with some spread on the scheme for senior citizens, as advised by the Shyamala Gopinath Committee.
Other important news on Small savings instruments:
During the announcement of interest for the quarter of April -Jun 18, the Ministry withdrew the earlier restrictions for credit of interest in respect of small savings to basic Savings Bank accounts. Now all the interest and maturity proceeds of small savings instruments operated by the Department of Posts may be paid to the depositors through the depositor’s savings account standing at a post office or any commercial bank, by cheque or in cash.
The PPF account rules were modified by the Government for the benefit of account holders. As per the modified PPF account holders can now make deposits in multiples of ₹50 any number of times in a financial year with a maximum of ₹1.5 lakh a year. Earlier, a maximum of 12 deposits was permitted in a period of 1 year. Read: New rules of PPF
Accounting is a multifaceted discipline. It caters to the diverse informational needs of stakeholders within…
As the name says ‘computerised accounting’ is the use of computers, software, and hardware to…
The Supreme Court today overruled a 2008 decision by the National Consumer Disputes Redressal Commission…
The Bank’s financial statements are prepared under the historical cost convention, on the accrual basis…
The term "accounting treatment" represents the prescribed manner or method in which an accountant records…
The Basel Committee on Banking Supervision (BCBS) is the primary global standard setter for the…