Interest rates for Government Savings Schemes have been revised effective from April 1st, 2023. The updated rates indicate a hike in small savings rates, nsc interest rate calculator, with PPF and NSC offering 8% interest, while senior citizens will receive 8.7%. Discover the revised NSC interest rates for 2023, the Sukanya Samriddhi Yojana interest rate, PPF interest rate, Kisan Vikas Patra interest rate, and the Senior Citizen Savings Scheme (SCSS) interest rate for 2023. Here, we provide the official interest rates for various small savings schemes, as announced by the Government of India, in effect from April 1st, 2023. The Ministry of Finance has disclosed these rates for schemes including the Public Provident Fund (PPF), National Savings Certificate (NSC), Kisan Vikas Patra (KVP), Senior Citizen Savings Scheme (SCSS), Post Office Monthly Income Scheme (MIS), and Sukanya Samriddhi scheme. These rates are applicable from April 1st, 2023, to June 30th, 2023.
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Interest Rate Revision of NSC, PPF, KYP, SSY, SCSS on April 1st, 2023
The Finance Ministry’s circular on April 1st, 2023, confirmed that the interest rates for various small savings schemes remain unchanged, mirroring those of the first quarter of 2023. The Government’s decision to notify small savings schemes’ interest rates on a quarterly basis stands firm. Accordingly, the interest rates for the third quarter of the financial year 2022-23, effective from April 1st, 2023, continue as follows, based on the schemes’ built-in interest compounding/payment structures:
The latest interest rates for PPF, Sukanya Samriddhi, and other Post Office deposits have been maintained from April 1st, 2023. The government’s periodic decisions alter the interest rates every quarter. According to the notification, there has been a reduction of 10 basis points in the interest rates on National Savings Scheme, Kisan Vikas Patra, and PPF. PPF’s interest rate has decreased from 7.9% to 7.1%, while the 5-year National Savings Scheme will now offer 7.9% interest. In the Sukanya Samrudhi scheme, the interest rate has been adjusted from 8.4% to 8.0%. However, postal savings’ rates remain steady at 4%. Regarding the Senior Citizen Savings Scheme, it will now provide 8.2% compared to the previous 8.6%. The National Savings Certificate will yield 7.7% as opposed to the earlier 7.9%. The government has opted to curtail interest rates on small savings schemes to align with the banking sector’s rates, coinciding with the RBI’s thrice-reduced policy rates this year. NSC Interest Rate, Sukanya Samriddhi interest rate
S.No. | Instruments | Interest Rates | Compounding |
---|---|---|---|
01. | Post Office Savings Account | 4.0 | Annually |
02. | 1 Year Time Deposit | 6.8 (Annual Interest ₹698 for ₹10,000/-) | Quarterly |
03. | 2 Year Time Deposit | 6.9 (Annual Interest ₹708 for ₹10,000/-) | Quarterly |
04. | 3 Year Time Deposit | 7.0 (Annual Interest ₹719 for ₹10,000/-) | Quarterly |
05. | 5 Year Time Deposit | 7.5 (Annual Interest ₹771 for ₹10,000/-) | Quarterly |
06. | 5 Year Recurring Deposit Scheme | 6.2 (Maturity Value ₹7,043 for ₹100/- Dn) (After Extension with Deposits 6 Years – ₹8,731/-, 7 Years – ₹10,526/-, 8 Years – ₹12,435/-, 9 Years – ₹14,465/- & 10 Years – ₹16,623/-) | Quarterly |
07. | Senior Citizen Savings Scheme | 8.2 (Quarterly Interest ₹205 for ₹10,000/-) | Quarterly and Paid |
08. | Monthly Income Account | 7.4 (Monthly Interest ₹62 for ₹10,000/-) | Monthly and Paid |
09. | National Savings Certificate (VIII Issue) | 7.7 (Maturity Value ₹14,490 for ₹10,000/-) | Annually |
10. | Public Provident Fund Scheme | 7.1 | Annually |
11. | Kisan Vikas Patra | 7.5 (will mature in 115 months) | Annually |
12. | Mahila Samman Savings Certificate | 7.5 (Maturity Value ₹11,602 for ₹10,000/-) | Quarterly |
13. | Sukanya Samriddhi Account Scheme | 8.0 | Annually |
- Kisan Vikas Patra (KVP) 7.50% (will mature in 112 months)
- All the new rates mentioned above will be effective from April 1st, 2023.
- These interest rates are applicable starting April 1st, 2023.
- Source: Finance Ministry website
The Post Office’s small savings scheme is a secure and risk-free investment option, appealing to small investors. It provides various savings products through its extensive network of 155,000 Post Offices. Sukanya Samriddhi interest rate, Vikas Patra interest rate
As the oldest and largest banking system in the country, the Post Office savings bank caters to the investment needs of both urban and rural customers. These services are rendered as an agency service for the Ministry of Finance, Government of India. The range of products offered caters to diverse investment requirements of customers. Sukanya Samriddhi interest rate, Vikas Patra interest rate
Fixed Deposit Account at Post Office
In CBS Post Offices, upon maturity of any Time Deposit (TD) account, the same TD account will be automatically renewed for the duration it was initially opened for, such as a 2-year TD account will be renewed for another 2 years. The interest rate applicable on the day of maturity will be applied.
Effective from April 1, 2023, the interest rates are as follows:-
Period | Rate |
---|---|
1 yr. A/c | 6.8% |
2 yr. A/c | 6.9% |
3 yr. A/c | 7.0% |
5 yr. A/c | 7.5% |
Deposit Amounts are as follows:-
Type of Account | Minimum Deposit | Maximum Deposit |
---|---|---|
1, 2, 3 & 5 Year TD | INR. 200/- and in multiples of INR. 200/- thereafter | No limit |
National Savings Certificates VIII Issue
Benefits
The National Savings Certificates (NSC) VIII Issue scheme is tailored for government employees, businessmen, and other salaried individuals who are income tax assesses. Some key benefits include: nsc interest rate calculator, Vikas Patra interest rate
- No maximum limit for investment.
- No tax deduction at source.
- Certificates can be used as collateral for bank loans.
- Trusts and HUFs cannot invest in this scheme.
- Single-holder type certificates can be purchased by adults for themselves, on behalf of minors, or to minors.
- Deposits qualify for tax rebates under Section 80C of the Income Tax Act.
- The interest, although accrued annually, is deemed to be reinvested under Section 80C of the Income Tax Act.
- Transfer of certificates between individuals can be done only once from the issue date to the maturity date without discharging old certificates.
At the time of transfer between individuals, old certificates remain unchanged, with the old holder’s name rounded off, and the new holder’s name written on the old certificate and purchase application. nsc interest rate calculator
Interest Rates
- Interest rate: 7.7%.
- Minimum investment: Rs. 1000/-, and in multiples of Rs. 100/-, with no maximum limit.
Post Office Monthly Income Scheme
Minimum Amount and Maximum Balance
- Open an account in multiples of INR 1500/-.
- Maximum investment limit is INR 4.5 lakh in a single account and INR 9 lakh in a joint account.
- Individual investment cap is INR 4.5 lakh (including the share in joint accounts).
Salient Features and Tax Rebate
- The account can be opened by an individual with cash or cheque, and nomination facilities are available.
- Transfers between post offices are permitted.
- Any number of accounts can be opened across post offices within the maximum investment limit.
- Minor accounts can be opened by minors above 10 years of age and operated by them.
- Joint accounts can be opened by two or three adults with equal shares among holders.
- Maturity period: 5 years from 1.12.2011.
- Premature withdrawals are subject to discounts.
- A bonus of 5% on principal amounts applies to certain MIS accounts opened within a specific period. nsc interest rate calculator
Senior Citizen Savings Scheme (SCSS) Account
- Interest rate: 8.2% per annum, payable from the date of deposit on specific dates.
- Maximum deposit: INR 15 lakh.
- Premature closure deductions apply after specified periods.
- TDS is deducted if the interest amount exceeds INR 10,000/- per annum.
NSC Interest Rate FAQ
The revised interest rates for National Savings Certificate (NSC), Public Provident Fund (PPF), Kisan Vikas Patra (KYP), Sukanya Samriddhi Yojana (SSY), and Senior Citizen Savings Scheme (SCSS) have been updated as of the latest revision date.
The interest rate changes were effective from the specified date mentioned in the official announcement.
The revised interest rates are available on the Finance Ministry’s official website.
The Government typically updates the interest rates for these small savings schemes periodically, and changes are usually notified on a quarterly basis.
Interest rates for these schemes are subject to various factors, including prevailing market conditions, economic policies, and decisions made by the Ministry of Finance.