The RBI’s recent monetary policy meeting in August 2023 didn’t bring any changes to the repo rate.
However, despite this, the country’s inflation rate is still higher than the RBI’s target.
Small Savings Scheme Interest Rate Shift
In light of the ongoing high inflation, several savings schemes in the country have seen adjustments in their interest rates.
These changes are scheduled to take effect at the end of September, specifically on the 29th or 30th.
September Rate Adjustments
The interest rates for the Small Savings Scheme are revised every quarter. The last rate increase occurred on June 30th.
Prior to that, interest rates were raised for the April to June quarter. In the June 30th revision, the government increased rates for 1-year and 2-year post office time deposits by up to 10 basis points (bps).
As a result, these deposits now yield 6.9 percent and 7 percent interest rates.
Notably, the interest rate for the Small Savings Scheme remained unchanged continuously from the financial year 2020-21 to 2022-23.
What Are Small Saving Schemes?
Small saving schemes offer people various benefits for saving and investing, and they are administered through the post office.
These schemes can be excellent options for individuals looking to save and invest their money wisely.
Small saving schemes provide the security of government backing, ensuring the safety of your money.
Additionally, they offer competitive interest rates, providing attractive returns on your investments. Some schemes also offer tax deductions, further enhancing their appeal.
