Shillong, June 30: The government has announced a marginal increase in interest rates on certain small savings schemes for the period of July to September. The rate hike ranges from 10 to 30 basis points (bps) across various schemes.
Key changes include a 10 bps increase in the 1-year and 2-year time deposit schemes, and a 30 bps increase in the 5-year recurring deposit scheme. The revised rates stand at 6.9% for the 1-year deposit scheme, 7% for the 2-year deposit scheme, and 6.5% for the 5-year recurring deposit.
However, popular schemes like the Public Provident Fund (PPF), National Savings Certificate (NSC), Kisan Vikas Patra, Senior Citizen scheme, and Sukanya Samridhhi scheme will maintain their current interest rates.
These new rates will come into effect from July 1. Small savings schemes offered by the government are favored by retail investors due to their secure nature and relatively higher interest rates compared to other investment options. These schemes cater to the diverse needs of different sections of society, including senior citizens, children, and low-income individuals.