The central government on Friday increased the interest rate on a number of small savings schemes for the first quarter of 2023-24 (April-June). The key schemes that will fetch higher returns to the investors are Senior Citizens Savings Scheme (SCSS), Monthly Income Scheme (MIS), National Savings Scheme, Kisan Vikas Patra and Sukanya Samriddhi Yojana.
The rate of Public Provident Fund (PPF) scheme remains unchanged at 7.1%. The rate of interest on time deposit of one to five years has also been increased.
Sukanya Samriddhi Yojana will fetch a return of 8% in April-June period of the current fiscal, compared with 7.6%. The scheme, backed by the central government is targeted at the parents of girl child, matures after twenty one years of inception. The premium payment period in the scheme is of fifteen years.
Similarly the interest on Senior Citizens Savings Scheme has been increased to 8.2% compared with 8%. Also, for the June quarter of the current fiscal, the National Savings Certificate will fetch 7.7% compared with 7%. The rate of interest on monthly income scheme has been increased to 7.4% from 7.1%.
The interest on PPF remains unchanged. It may be noted that while the rate of interest on small savings had gone down in line with the low benchmark rates in the wake of the Covid-19 pandemic in the last two years, the rate of return on PPF was not reduced. In fact, the government announced lowering rate on PPF to 6.4% in 2021, but recalled the decision overnight.
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