New interest rates for the Small Savings Scheme have been announced for the third quarter (October-December). The government has increased the interest rates available on these schemes by up to 30 basis points.
The Central Government on Thursday announced new interest rates for the Small Savings Scheme for the third quarter (October-December). This time the government has increased the interest rate on small savings schemes by up to 30 basis points for the quarter starting October 1. 3-year fixed deposits in post offices have been reduced to 5.8 percent from the existing 5.5 percent.
The interest rate for Senior Citizen Savings Scheme has been increased from 7.4% to 7.6%, for Kisan Vikas Patra from 6.9% to 7% and interest rates have also been increased for two and three year fixed deposits. Regarding the Kisan Vikas Patra, there has also been a change in the tenure. Now the maturity of KVP with 7 percent interest rate has been made 123 months, while the period of KVP with 6.9 percent was 124 months.
No change in NCS and PPF
However, interest rates on savings deposits, 1 year, 5 year FD, National Savings Certificate (NCS), Sukanya Samriddhi Yojana, Public Provident Fund (PPF) will continue to be the same as for the current quarter. The interest rate on National Savings Certificate is currently 6.8 percent. The interest rate on Public Provident Fund (PPF) is 7.10 percent.
Significantly, the Reserve Bank has increased the benchmark lending rate by 140 basis points since May. This has prompted banks to raise interest rates on deposits as well.
RBI policy tomorrow
Till now such an announcement was made after the monetary policy review meeting of the Reserve Bank, but this time the government has announced it a day in advance. The MPC meeting of the Reserve Bank of India, which began yesterday (September 28), will end tomorrow (Friday). Policy rates may be revised tomorrow. Most experts are predicting a further increase in lending rates. If this happens then the loan will become costlier and the EMI will increase.
