Govt hikes Q3 interest rates on some small savings schemes by up to 30 bps
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.
FollowThe 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. This time, the government has raised the interest rate by up to 30 basis points on small savings schemes for the quarter beginning 1 October.
An increase of 30 basis points for the third quarter of the current fiscal year, the revision would boost the interest rate on a three-year time deposit with post offices to 5.8 percent from the current 5.5 per cent. According to a statement from the finance ministry, the Senior Citizen Savings Scheme would earn 20 basis points extra from its current rate of 7.4 per cent to 7.6 per cent from October through December.
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The interest rate for Kisan Vikas Patra to 7% from 6.9% and also increased for two, three-year time deposits. The interest rate for monthly income account scheme has also been hiked to 6.7% from current 6.6%.
The government has altered the duration and interest rates for the Kisan Credit Card. Banks upped their interest rates on deposits as a result of the Reserve Bank's 140 basis point increase in the benchmark lending rate since May.
Meanwhile, the finance ministry in a statement said that government plans to stick to borrowing for the second half of FY 2022-23 while plans on borrowing Rs 5.92 lakh crores in the second half.Â
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(With PTI inputs)
