India Business Journal - Rates of small savings schemes hiked to align with high interest regime

ECONOMY

Rates of small savings schemes hiked to align with high interest regime

IBJ Bureau
Sep 30, 2022

The government on Thursday raised rates on some small savings schemes by up to 30 basis points (bps) in line with the hardening interest rate in the economy.

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 would earn 20 basis points more to 7.6 per cent from the existing rate of 7.4 per cent during the October-December period, a Finance Ministry notification said.

With regard to Kisan Credit Card, the government has revised both tenure and interest rates.

Since May, the Reserve Bank of India has raised the benchmark lending rate by 140 basis points, prompting banks to raise interest rates on deposits as well.