2023-11-29 15:59:37
The government has announced the interest rates for the October – December 2023 quarter, offering insight into various small savings schemes available to investors in India. Small savings schemes are savings instruments administered by the government to encourage regular saving among Indian citizens. These schemes include savings deposits, social security schemes, and monthly income plans.
The interest rates for October – December 2023 quarter for small savings schemes are as follows:
– Savings Deposit: 4 percent
– 1-year Post Office Time Deposit: 6.9 percent
– 2-Year Post Office Time Deposit: 7.0 percent
– 3-Year Post Office Time Deposit: 7 percent
– 5-Year Post Office Time Deposit: 7.5 percent
– 5-year Recurring Deposits: 6.7 per cent (previously offered 6.5 per cent)
– National Savings Certificate (NSC): 7.7 percent
– Kisan Vikas Bond: 7.5 per cent (maturity in 115 months)
– Public Provident Fund: 7.1 percent
– Wealth Savings Scheme: 8.0 percent
– Senior Citizen Savings Scheme: 8.2 percent
– Monthly Income Plan: 7.4 percent
Small savings schemes provide stable returns and come with government backing. These schemes are an attractive investment option for those seeking steady income.
The government has not made any change in interest rates for small savings schemes like Public Provident Fund, Sukanya Samriti, Senior Citizen Savings Scheme, and Post Office Time Deposits for the October-December 2023 quarter. However, the interest rate on 5-year recurring deposits alone has been hiked by 20 basis points to 6.7 per cent.
Interest rates for small savings schemes are reviewed at the end of every quarter and are decided accordingly for the next quarter. The government has increased interest rates on various small savings schemes, 1-year & 2-year post office time deposits, and 5-year recurring deposits as of June 30, 2023. This marks the fourth time interest rates have been hiked from September 2022. No change was made for the next 9 quarters from the second quarter of 2020-21 to the second quarter of 2022-2023.
In comparison, leading banks like HDFC Bank, Punjab National Bank, and State Bank of India offer fixed deposit interest rates ranging from 7.50% to 7.75% per annum, depending on the age and duration of the deposit. Fixed deposits are another popular investment option that can generate steady income.
These schemes and banks thus offer a variety of investment options for those seeking stable income. It is always advisable for investors to carefully evaluate their options and consider factors such as interest rates, investment duration, and future financial goals before making an investment decision.
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