33 C
Saturday, June 3, 2023

The Center raises the interest rates of small savings plans by up to 70 basis points

NEW DELHI: The Center on Friday raised interest rates on small savings plans by up to 70 basis points for the April-June 2023 quarter.

The interest rates of schemes such as the Savings plan for seniors (SCSS), Monthly Income Savings Regime, National Savings Certificate (NSC), Kisan Vikas Patra, all Postal time deposits and Sukanya Samriddhi Account Scheme they have been walked.
The interest rate of the Public Provident Fund (PPF) has remained unchanged at 7.1%.
NSC interest has experienced the largest increase of 70 basis points and now stands at 7.7%; SCSS interest has risen 20 basis points to 8.2% from 8%.
SCSS deposit limit is also expected to rise to Rs 30 lakh per account as announced at Union Budget 2023.
The Reserve Bank of India (RBI) has been raising key rates since May 2022.
This is the third time in the last 9 months the Center has increased interest rates on small savings plans. Because of this, banks have been raising interest rates on fixed deposits (FDs), which is good news for FD investors who have been sitting on low interest rates for decades.
The last interest rate increase It was expected as government bond yields have risen. Small savings rates are linked to the yields of government bonds of the same maturity and are readjusted quarterly. Now that bond yields have risen sharply, small savings rates have been revised up.
(With contributions from agencies)

Related Articles


Please enter your comment!
Please enter your name here

Latest Articles