Small Savings Scheme (SCSS), Post Office Time Deposit, KVP Interest Rate Hike 2022: The Government of India on Thursday (September 29, 2020) hiked interest rates on some small savings schemes by up to 30 bps.
As per the new rates, a three-year time deposit with post offices would now earn 5.8 per cent from the existing 5.5 per cent, an increase of 30 basis points for the third quarter of the current financial year.
Senior Citizen Savings scheme will now earn 20 basis points more. The SCSS interest rate has been increased to 7.6 per cent for the October-December period, a notification from the Finance Ministry said. The previous rate was 7.4 per cent.
The Reserve Bank of India since May has raised the benchmark lending rate by 140 basis points, prompting banks to raise interest rates on deposits as well.
The Kisan Vikas Patra (KVP) scheme interest rate has been increased to 7% from 6.9%. With this, KVP deposits will now mature in 123 months.
The interest rate on Post Office 2-year Time Deposit has been increased from 5.5% to 5.7% while the interest rate on Post Office Monthly Income Account Scheme has been increased from 6.6% to 6.7%.
Meanwhile, there has e no change in interest rates of Sukanya Samriddhi Yojana (SSY), Public Provident Fund (PPF), or National Savings Certificate (NSC).
The interest rate on Post Office Savings Deposit, 1 Year Tome Deposit, 5-year Tome Deposit and Post Office Recurring Deposit have not changed.
The new interest rates will be applicable for the third quarter of the financial year 2022-23 starting October 2022 and ending on 31st December 2022.