How much benefit did you get on the increased interest rates on small savings schemes, know all the maths here

Small Saving Schemes: Ashwani Rana, founder of Voice of Banking, says that the Finance Ministry has announced to increase the interest rate on some small savings schemes from 0.20 per cent to 1.10 per cent from January 2023. This increase has gone up for the second consecutive quarter. While this step will benefit the customers depositing in the post office, there will also be pressure on the banks to increase the interest rate on deposits. Banks will also be under pressure to pay more interest on deposits.

While the effect of the increase in the repo rate has been more on the borrowers, the depositors have not got the same benefit. Especially senior citizens have been demanding for a long time to increase the interest rate on deposits.

Government has increased interest rates on Friday

The government on Friday raised interest rates on small savings deposit schemes including Post Office Fixed Deposit, NSC and Senior Citizen Savings Scheme by up to 1.1 per cent. This increase will be applicable from January 1. Mainly the interest of such post office schemes has been increased, on which tax exemption is not available. This increase of the government is in line with the recent hike in interest rates. However, the interest rates of Public Provident Fund (PPF) and Girl Child Savings Scheme ‘Sukanya Samriddhi’ have not been changed.

According to the notification of the Ministry of Finance, the interest rate on NAC, Senior Citizen Saving Scheme and Kisan Vikas Patra (KVP) has been increased by up to 1.1 percent. The income from these schemes is taxable.

National Savings Certificate (NSC) will get interest at the rate of seven percent from January 1. Now it is 6.8 percent. Similarly, the Senior Citizen Savings Scheme will get eight per cent interest as against the existing 7.6 per cent. Interest rates on Post Office Term Deposit Scheme for a period of one to five years will increase by 1.1 per cent. In the Monthly Income Scheme also, instead of 6.7 percent, now 7.1 percent interest will be available. Interest rates for some schemes have increased for the second consecutive quarter. Interest rates for small savings schemes are notified on a quarterly basis.

Increased rates on post office term deposits

According to the new rates, 6.6 per cent interest will be available on fixed deposits in the post office for one year, 6.8 per cent for two years, 6.9 per cent for three and seven per cent for five years. It has been said in the notification that 0.4 percent more interest will be given on the Senior Citizen Savings Scheme during January-March. Eight percent interest will be given on this scheme.

Know the interest rates of Kisan Vikas Patra

The government has increased the interest rates of KVP with maturity of 120 months by 7.2 per cent. Currently, KVP with a maturity of 123 months offers seven percent interest. The interest rate of Monthly Income Scheme has been increased by 0.40 percent to 7.1 percent, while the National Savings Certificate (NSC) has been increased by 0.2 percent. Seven percent interest will be given on this.

Know the interest rates of PPF as well

The interest rate on girl child savings scheme Sukanya Samriddhi Yojana has been retained at 7.6 per cent and the Public Provident Fund (PPF) interest rate is unchanged at 7.1 per cent. Interest will continue to be earned on savings deposits at the rate of four per cent per annum.

read this also

Year Ender 2022: Bumper returns in the stock market, investors’ capital increased by Rs 16.38 lakh crore this year