The central government on Friday raised interest rates on various small savings schemes for the three months from April 1 to June 30 by 10 to 70 basis points, indicating a formal order.
The highest increase was in the case of National Savings Certificates, the interest rate increased from 7% applied for the period from January to June this year to 7.7% for the period from April 1. until June 30.
The 5-year deposit rate increased from 7% to 7.5%, while the 5-year term deposit rate increased from 5.8% to 6.2%. The Senior Citizen Savings Program interest rate has been increased from 8% to 8.2%, while the Monthly Income Account Program interest rate has been increased from 7.1% to 7.4%. The rate on Kisan Vikas Patra has been raised from 7.2% to 7.5%. The plan is now due to expire in 115 months, compared to 120 months earlier. No change in interest rates on Public Provident Fund deposits, remained at 7.1%.
The interest rate applied to the Sukanya Samriddhi Account scheme for girls will take 8% between April and June compared with 7.6% in the first three months of this year, the order showed.
Experts say the increase in interest rates on small savings The tool was expected and it should help to get a steady deposit in the June quarter.
In the union budget for fiscal year 24, finance minister Nirmala Sitharaman announced measures to make small savings schemes more attractive.
Budget proposes to increase maximum deposit limit for Senior Citizen Savings Program from ` $15 thousand to $30 lakh and in case of Monthly Income Account Program from $4.5 lakh to Rs` 9 lakh for an account and from $9 thousand to $15 lakh for joint account. The budget also proposes a new small savings scheme Mahila Samman Savings Certificate, to be offered for a period of two years until March 2025.
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