New Delhi: In some good news for Fixed Deposit (FD) investors, the Centre on Friday increased the interest rates for 3-year term deposits and Sukanya Samridhi scheme. The interest on 3-year FD has been raised by 10 basis points while the interest rate on Sukanya Samridhi has increased by 20 basis points.
The Ministry of Finance in a notification said that the interest rate on small savings schemes stands revised for the fourth quarter of fiscal 2023-24. Barring the 3-year FDs and Sukanya Samridhi, interest rate under small savings schemes have remained the same.
According to MOF notification, interest rate on PPF continues to be 7.1%, 7.7 on NSC and 8.2% for Senior Citizen Savings Scheme.
Notably, the interest rate for small savings schemes including Public Provident Fund (PPF), National Savings Certificate (NSC) and Kisan Vikas Patra (KVP) are reviewed every quarter & revised also.
How much hike in interest rates
As per revised list by the Ministry of Finance, the interest rate for 3-year term deposit stands at 7.1% and 8.2% for Sukanya Samriddhi Scheme in the last quarter of fiscal. Earlier, these interest rates stood at 7.1% & 8.0% respectively.
The Public Provident Fund (PPF), one of the most sought after scheme has seen no revision in interest rates. The interest rate under PPF have remained static at 7.1%. The last time it was tweaked was in April-June 2020, when it was slashed from 7.9% to 7.1%.
Small savings schemes serve as good instruments for working professional in saving their income tax. Individuals can claim exemption upto Rs 1.5 lakh under 80C of the Income Tax Act by investing in any of these small schemes including PPF, NSC or SSY.
