Small savings schemes: Revision of Interest rate for July-September 2023 Quarter

The latest chart of interest for small savings instruments for the Q2 (July 1 to September 30) of 2023 are as under.

SchemeRate of interest for             July-September 2023Rate of interest from April -June 2023Interest compounded
Savings account4.00%4.00%Annual  rest
1-year time deposit6.90%6.80%Quarterly rest
2-years’ time deposit7.00%6.90%Quarterly rest
3-years’ time deposit7.00%7.00%Quarterly rest
5-years’ time deposit7.50%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 Scheme7.40%7.40%Interest paid monthly,
5 -years NSC7.70%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 Scheme8.00%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

Surendra Naik

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Surendra Naik

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