The government has increased interest rates on some small saving schemes for the July-September quarter. The highest increase is 0.3% for the five-year recurring deposit (RD). RD holders will now get 6.5% interest instead of 6.2%.
Interest rates on one-year and two-year term deposits have also been increased by 0.1%. They will now earn 6.9% and 7% interest respectively.
Interest rates on PPF, savings deposits, NSC, Sukanya Samriddhi, senior citizen savings scheme, and Kisan Vikas Patra have not been changed. They will continue to earn 7.1%, 4%, 7.7%, 8%, 8.2%, and 7.5% interest respectively.
The government reviews and revises interest rates on small saving schemes every quarter. The new rates will be applicable from July 1.
Here is a table summarizing the new interest rates:
| Scheme | Interest Rate |
|---|---|
| Five-year recurring deposit | 6.5% |
| One-year term deposit | 6.9% |
| Two-year term deposit | 7% |
| PPF | 7.1% |
| Savings deposit | 4% |
| National Savings Certificate (NSC) | 7.7% |
| Sukanya Samriddhi | 8% |
| Senior citizen savings scheme | 8.2% |
| Kisan Vikas Patra (KVP) | 7.5% |