Small Saving Scheme: RBI had not made any change in the key interest rates in the last monetary policy in August 2023, but the inflation rate in the country still remains above the target level.
Due to this, interest rates are also at a high level in the country, which includes bank deposits and small savings schemes like PPF, NSC and Kisan Vikas Patra (KVP). Meanwhile, interest rates on small savings schemes may be changed at the end of September 2023 – 29th or 30th September.
Interest rates change every quarter
Interest rates for small savings schemes are notified on a quarterly basis. In the last change on June 30, interest rates on many small savings schemes were increased. Earlier, interest rates were also increased for April-June 2023.
These are the interest rates (Small Saving Scheme Interest Rate)
In the last change made on June 30, the government had increased the interest rates on 1-year and 2-year Post Office Scheme time deposits by 10 basis points to 6.9 per cent and 7.0 per cent respectively, and on 5-year recurring deposits by 30 basis points. The interest rate was increased to 6.5 percent by increasing the points. There was no change in the interest rates on the remaining schemes.
It is known that from the second quarter of 2020-2021 to the second quarter of 2022-23, there was no change in the interest rates of small savings schemes for nine consecutive quarters.
What is Small Saving Scheme?
Small Savings Schemes are savings instruments that are managed by the government to encourage citizens to save regularly. There are three categories of small savings schemes, which include savings deposits, social security schemes and monthly income plans.
Saving deposits include fixed deposits for 1-3 years and recurring deposits for 5-years.
These also include saving certificates like National Savings Certificate (NSC) and Kisan Vikas Patra (KVP). Social security schemes include Public Provident Fund (PPF), Sukanya Samriddhi Account and Senior Citizen Saving Scheme. Monthly Income Account is included in its monthly income plan.
