The Reserve Bank of India since May has raised the benchmark lending rate by 190 basis points, prompting banks to raise interest rates on deposits as well
After nine quarters of status quo, the government has raised rates on some small savings schemes that do not get income tax benefit. The small saving deposits that have seen a hike in interest rates are two-year, three-year time deposit with post offices, Senior Citizen Savings scheme (SCSS), Kisan Vikas Patra (KVP) and Post Office Monthly Income Account. The interest rate on small savings schemes was last revised during the first quarter of 2020-21, when rates were slashed. The new interest rates are applicable from 1 October 2022.
Post Office two-year time deposit latest interest rates
The interest rate is hiked by 20 basis points in the 2-year time deposit to 5.7% from their previous 5.5%.
Post Office three-year time deposit latest interest rates
With the revision, a three-year time deposit with post offices would 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 latest interest rates
Senior Citizen Savings scheme will earn 20 basis points more at 7.6 per cent from the existing rate of 7.4 per cent.
Kisan Vikas Patra (KVP) latest interest rates
With regard to Kisan Vikas Patra (KVP), the government has revised both tenure and interest rates. The new rate for KVP would be 7 per cent and the maturity period is 123 months, compared to the existing interest rate of 6.9 per cent and maturity period of 124 months
Monthly Income Scheme (MIS) latest interest rates
Monthly Income Scheme (MIS) would earn 10 basis points more at 6.7 per cent as compared to existing 6.6 per cent.
PPF, NSC, Sukanya Samridhhi Yojana latest interest rates
Meanwhile, there has been no change in interest rates of Sukanya Samriddhi Yojana (SSY), Public Provident Fund (PPF), 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 Reserve Bank of India since May has raised the benchmark lending rate by 190 basis points, prompting banks to raise interest rates on deposits as well.