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FY 2024 has started on a positive note for the fixed income investors. In the latest announcement by Ministry of Finance, Department of Economic Affairs, the government has increased interest rates across small savings schemes.
For April-June 2023, the finance ministry has hiked rates of National Savings Certificates (NSC) by 70 bps to 7.7%.
Similarly, the government has hiked interest rate of Senior Citizen Savings Scheme (SCSS) by 20 bps to 8.2% and Sukanya Samriddhi Yojana (SSY) by 40 bps to 8%.
Notably, the government has not only increased the rate of interest of Kisan Vikas Patra (KVP) by 30 bps to 7.5%, it has reduced its maturity period by 5 months to 115 months.
In addition, government has hiked interest on Post Office Savings Deposit across tenure. Also, five year time deposit and recurring deposit saw rate hike of 50 bps and 40 bps respectively.
However, the interest rate offered by Post Office Savings Account and Public Provident Fund (PPF) remain unchanged.
Let’s look at the table to know more.
