Interest Rates Increased By Up To 30 Bps On Some Post Office Small Savings Schemes: Study More

The interest rates on a few modest savings plans for the quarter from July to September 2023 were raised by the finance ministry on Friday.

Consistent Deposits

According to its June 30 circular, the interest rates for five-year recurring deposits rose from 6.2 percent to 6.5 percent, an increase of 30 basis points.

Let’s examine the interest rates for several modest savings plans.

Postal Time Deposit Programme

Additionally, the interest rates for this plan have been increased. For the July-September quarter, the interest rate on one-year time deposits rose from 6.8% to 6.9%. Rates on time deposits with a maturity of two years rose by 10 basis points, from 6.9% to 7.0%.

However, the interest rates for time deposits with terms of three and five years remained the same. Additionally, the rates on savings accounts stayed the same at 4%.

The following schemes have unchanged interest rates.

SCSS, or Senior Citizen Savings Scheme

The SCSS scheme’s interest rate stayed unchanged at 8.2%. Among all other modest savings plans, it continues to provide the greatest interest rates. At the conclusion of each quarter, the interest is due. The investment minimum is Rs 1,000 and the investment maximum is Rs 30 lakh.

Only those who are 60 or older may open this account. In accordance with Section 80C of the Income Tax Act, they may also claim tax advantages.

Scheme for Post Office Monthly Income Accounts

The rates stayed at 7.4%, the same as they were in the first quarter. This account may be opened by anybody with a minimum deposit of Rs. 1,000 and in multiples of Rs. 1,000. Monthly interest is paid. Investments up to Rs. 9 lakh and Rs. 15 lakh are permitted per account, respectively.

PPF, or public provident fund

PPF accounts continue to earn interest at the same 7.1% rate. The minimum and maximum investment amounts each fiscal year are 500 and 1.5 lakh rupees, respectively. Investments made via PPF are tax-free, and interest is compounded annually.

Accounts for Sukanya Samriddhi (SSA)

At 8%, the interest rate remained unaltered. The minimum and maximum annual investments are 250 and 1.5 lakh rupees, respectively. Every year, the interest is compounded.

NSCs are National Savings Certificates.

The NSC rates for the second quarter of FY23-24 were constant at 7.7%. Every year, the interest is compounded. The minimum and maximum deposits into this account are also Rs 1,000.

KVP, or Kisan Vikas Patra

Additionally, the charges for this programme remained the same at 7.5%. In 115 months, or nine years and seven months, the programme is complete. The minimum deposit is Rs 1,000, with subsequent deposits in multiples of Rs 100 and no upper limit.