The finance ministry notifies the interest rates for Small Saving Schemes on a quarterly basis, after a review of the interest rate scenario and inflation. Here are the latest rates for the April 1, 2023 to June 30, 2023 quarter.
Where it has remained constant:
- Savings deposit: 4%
- Public Provident Fund (PPF): 7.1%
Where it has increased:
- 1-year time deposit: 6.6% to 6.8%
- 2-year time deposit: 6.8% to 6.9%
- 3-year time deposit: 6.9% to 7%
- 5-year time deposit: 7% to 7.5%
- 5-year recurring deposit: 5.8% to 6.2%
- Senior Citizen Savings Scheme (SCSS): 8% to 8.2%
- Monthly Income Account: 7.1% to 7.4%
- National Savings Certificate (NSC): 7% to 7.7%
- Kisan Vikas Patra (KVP): 7.2% to 7.5% (however, maturity has decreased from 120 months to 115 months)
- Sukanya Samriddhi Account (SSA): 7.6% to 8%
Those who have daughters, should look at the SSA, which can be opened in the name of the girl till she attains the age of 10. Deposits can go up to Rs 1.5 lakh in a financial year. For 21 years, the money is assured of a compounded return, with the highest safety as it is backed by the government. There are exceptions to the 21-year lock in, marriage being one of them.