Customers wait to deposit their money at a post office in New Delhi. Image for representation only
| Photo Credit: Reuters
The government has raised interest rates on eight of the 12 small savings schemes by 0.2% to 1.1% for the January to March 2023 quarter, but left the returns on Public Provident Fund (PPF) unchanged at 7.1%.
The Sukanya Samriddhi Account scheme’s returns were retained at the prevailing 7.6%, while the return on Kisan Vikas Patra (KVP) and the National Savings Certificates were raised by just 0.2% each, to 7.2% and 7%, respectively.
Time deposits for one, two and three years, were granted the sharpest 110 bps increase in returns — lifting their returns to 6.6%, 6.8% and 6.9%, respectively. Five-year time deposits will now earn 7% instead of 6.7% in the current quarter.
Returns on the Senior Citizen Savings Scheme and the Monthly Income Account Scheme have been raised by 40 bps each, taking them to 8% and 7.1%, respectively.
Interest rates on post-office term deposit schemes of duration 1 to 5 years will rise by up to 1.1% points.
(With inputs from PTI)