The revised rates were notified by the Department of Economic Affairs of the Ministry of Finance on September 29.
The interest rate on the five-year recurring deposit scheme was raised by the government on Friday for the period between October and December by 20 basis points. Interest rates have increased from 6.5% to 6.7%. The interest rates offered on all other modest savings vehicles will be the same.
On September 29, the Department of Economic Affairs of the Ministry of Finance notified customers of the new tariffs. The office letter stated, “The rates of interest on various Small Savings Schemes have been amended for the third quarter of financial year 2023-24 commencing from 1st October, 2023 and concluding on 31st December, 2023.
Only the interest rate for the five-year recurring deposit scheme has increased, according to the notification. The one, two, and three-year recurring deposit schemes will continue to give 6.9%, 7%, and 7% interest rates, respectively, while the savings program will maintain its current interest rate of 4%.
The monthly income account scheme has an interest rate of 7.4%, while the senior citizen savings plan has an interest rate of 8.2%. The National Savings Certificate, Public Provident Fund Scheme, Kisan Vikas Patra, and Sukanya Samriddhi Account Scheme are additional programs with unchanged interest rates.
The government bond yields rose on Thursday, with the benchmark yield seeing its largest one-session increase in this year. The benchmark 10-year rate, which had previously concluded at 7.1704%, now stands at 7.2414%.