Govt hikes interest rates on Sukanya Samriddhi scheme, 3-yr term deposit by up to 20 bps

New Delhi: The government on Friday raised the interest rates on the Sukanya Samriddhi scheme by 20 basis points and the three-year term deposit scheme by 10 basis points for the January-March quarter while retaining the rates for all other small savings schemes.

According to a finance ministry circular, the deposit under the Sukanya Samriddhi scheme would attract an interest rate of 8.2 per cent from the existing 8 per cent, while the 3-year term deposit would become 7.1 per cent from the current 7 per cent.

However, the interest rates for popular PPF and savings deposits have been retained at 7.1 per cent and 4 per cent, respectively.

The rates were the same during the December quarter.

The interest rate on the Kisan Vikas Patra is 7.5 per cent and the investments will mature in 115 months.

The interest rate on the National Savings Certificate (NSC) remained unchanged at 7.7 per cent for January 1 to March 31, 2024, period.

There is no increase in interest rate for the Monthly Income Scheme, and this will earn 7.4 per cent for the investors.

The government notifies the interest rate on small savings schemes, majorly operated by post offices, every quarter.

The Reserve Bank since May 2022 has raised the benchmark lending rate by 2.5 per cent to 6.5 per cent, prompting banks to raise interest rates on deposits as well.

However, the RBI has maintained the status quo on policy rate in the last five consecutive Monetary Policy Committee meetings since February this year.