With the new year, the Central Government raised the interest rates for the Small Savings Scheme. The Public Provident Fund and Sukanya Samridhi Yojana are the exceptions to this policy because their interest rates have not altered. On their fixed deposits, the post office offers an interest rate of 6.5-7%. (FDs).
The government has revised the interest rates for these small savings schemes previously. The interest rates on all savings plans have increased this time around, with the exception of the Public Provident Fund and Sukanya Samridhi Yojana, which only saw increases in September 2022. The post office’s rates are now more appealing as a result of the rise in interest rates.
The interest rates for each plan for the month of January to the month of March of 2023 are listed below:
1. 1 year time deposit: 6.5 per cent
2. 2 year time deposit: 6.8 per cent
3. 3 year time deposit: 6.9 per cent
4. 5 year time deposit: 7 per cent
5. National Savings Certificate: 7 per cent
6. Kisan Vikas Patra Yojana: 7.2 per cent
7. Public Provident Fund Scheme: 7.1 per cent
8. Sukanya Samriddhi Yojana: 7.6 per cent
9. Senior Citizen Saving Scheme: 8 per cent
10. Monthly Income Scheme: 7.1 per cent
Banks increased rates of FD:
Private and public sector banks have hiked their FD rates since the Reserve Bank raised the repo rate in 2022. While some nationalised banks are giving interest rates as high as 9%, some banks are only offering rates up to 7%. The interest rates on their FDs have increased over the past year at PNB, SBI, HDFC, ICICI, BOB, and other banks.