For individuals seeking fixed-income instruments, small savings plans are a useful tool. The government backs these programs, which include post office deposits, national savings certificates, and public provident funds. The most recent interest rates for modest savings plans are as follows:
What Are Small Savings Schemes?
These are government-managed savings accounts designed to motivate people to save money regularly. There are three types of minor savings programs: monthly income plans, social security plans, and savings deposits.
Three- to five-year time deposits and recurring deposits are examples of savings deposits. They also contain saving certificates like Kisan Vikas Patra and National Saving Certificates (NSC). The Public Provident Fund, Sukanya Samriddhi Account, and Senior Citizens Savings Scheme are examples of social security programs. The Monthly Income Account is a part of the monthly income plan.
Latest Interest Rates On Small Savings Schemes
- Savings Deposit: 4 per cent
- 1 Year Post Office Time Deposits: 6.9 percent
- 2-Year Post Office Time Deposits: 7.0 percent
- 3-Year Post Office Time Deposits: 7 percent
- 5-Year Post Office Time Deposits: 7.5 percent
- 5-Year Recurring Deposits: 6.7 percent (6.5 percent earlier)
- National Saving Certificates (NSC): 7.7 percent
- Kisan Vikas Patra: 7.5 percent (will mature in 115 months)
- Public Provident Fund: 7.1 percent
- Sukanya Samriddhi Account: 8.0 per cent
- Senior Citizens Savings Scheme: 8.2 percent
- Monthly Income Account: 7.4 percent.
The government has maintained the interest rates on post office time deposits, PPF, Sukanya Samriddhi, Senior Citizens Savings Schemes, and other modest savings programs constant for the October–December 2023 quarter. The interest rate on just 5-year recurring deposits increased by 20 basis points to 6.7%.
Every quarter at the conclusion, interest rates on modest savings plans are reviewed and adjusted for the next quarter. The government increased interest rates on a number of minor savings plans, including 5-year recurring deposits and 1- and 2-year post office time deposits, at the most recent review, which took place on June 30, 2023.
After holding interest rates steady for nine straight quarters, from the second quarter of 2020–21 to the second quarter of 2022–23, the government increased interest rates on a few modest savings plans for the October–December 2022 quarter. This was the fourth boost since September 2022.