Check Latest Interest Rates on Small Savings Schemes Like FDs, PPF, Post Office, NSC

Small Savings Schemes: Today, many people want to find safe ways to grow their money because the financial world is uncertain. One good option is government-run small savings plans. Small savings schemes are like a good choice for people who want to put their money in a safe place and get a regular amount of money in return.

These schemes are supported by the government and include things like the public provident fund, national savings certificates, and post office deposits. This article will talk about what these plans are and tell you the interest rates for the last three months of 2023.

What Are Small Savings Schemes?

Small savings schemes are financial instruments skillfully managed by the government to foster a culture of regular savings among citizens. They encompass a wide array of options, falling under three main categories:

1. Savings Deposits

There are different ways to save money over time. You can put your money in accounts that last for 1 to 3 years, or you can make regular deposits for 5 years. These options help you save money little by little. You can also invest in saving certificates like National Saving Certificates (NSC) and Kisan Vikas Patra. These certificates give you a steady amount of money back in the future.

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2. Social Security Schemes

For those looking for social security alongside financial growth, this category comprises the following schemes:

• Public Provident Fund (PPF): A long-term investment avenue with a stellar track record of safety and growth.
• Sukanya Samriddhi Account: Tailored for the benefit of young girls, it provides an avenue for building a financial foundation for their future.
• Senior Citizens Savings Scheme: Geared towards the elderly, this scheme offers a secure and lucrative investment opportunity.

3. Monthly Income Plans

For individuals seeking periodic returns, the Monthly Income Plan is an excellent choice, ensuring a steady inflow of funds.

Latest Interest Rates On Small Savings Schemes

For the quarter of October-December 2023, the interest rates on small savings schemes stand as follows:

• Savings Deposit: 4.0%
• 1-Year Post Office Time Deposits: 6.9%
• 2-Year Post Office Time Deposits: 7.0%
• 3-Year Post Office Time Deposits: 7.0%
• 5-Year Post Office Time Deposits: 7.5%
• 5-Year Recurring Deposits: 6.7% (Previously 6.5%)
• National Saving Certificates (NSC): 7.7%
• Kisan Vikas Patra: 7.5% (Matures in 115 months)
• Public Provident Fund (PPF): 7.1%
• Sukanya Samriddhi Account: 8.0%
• Senior Citizens Savings Scheme: 8.2%
• Monthly Income Account: 7.4%

In the last three months of 2023, the government didn’t change the interest rates for most savings plans like PPF, Sukanya Samriddhi, Senior Citizens Savings, and post office time deposits. But they did increase the interest rate for 5-year recurring deposits by a little bit, making it 6.7%.

A History of Interest Rate Changes

The government regularly checks and changes the interest rates for small savings plans every few months. On June 30, 2023, they raised the interest rates for some savings plans, like those you can have at the post office for 1 year or 2 years, and also for a special kind of savings plan that lasts 5 years. This is the fourth time they’ve raised the interest rates since September 2022 when they started making these changes. It’s important to note that the interest rates stayed the same for nine quarters in a row, from the middle of 2020 to the middle of 2022.

People who want to invest their money safely and make a good profit often choose small savings schemes. These schemes are supported by the government and offer good interest rates, which means they can help you save money and make it grow. Whether you’re saving for a special reason or just want to make sure your money is safe for the future, small savings schemes are a trustworthy way to reach your goals.

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