New Delhi: The Centre raised interest rates on several Small Savings Schemes (SSS) for the second quarter of 2023. Interest rates on 1-year and 2-year post office time deposits hiked by 10 bps to 6.9 per cent and 7.0 per cent, respectively, with raise of 30 bps on 5-year recurring deposits to 6.5 per cent, as per an official statement. On the other hand, interest rates on other schemes remained as it is.

“The rates of interest on various small savings schemes for the second quarter of the financial year 2023-24 starting from July 1, 2023, and ending on September 30, 2023, have been revised,” the Union Finance Ministry stated in a memorandum on Friday.

Revised rates on the SSS for the June quarter of 2023:

Savings Deposit: 4 per cent (remains unchanged)

1-Year Post Office Time Deposits: 6.9 per cent (previously, was 6.8 per cent)

2-Year Post Office Time Deposits: 7.0 per cent (previously, was 6.9 per cent)

3-Year Post Office Time Deposits: 7 per cent (remains unchanged)

5-Year Post Ofice Time Deposits: 7.5 per cent (remains unchanged)

National Savings Certificates (NSC): 7.7 per cent (remains unchanged)

Kisan Vikas Patra: 7.5 per cent which matures in 115 months (remains unchanged with maturity period)

Public Provident Fund: 7.1 per cent (remains unchanged)

Sukanya Samriddhi Account: 8 per cent (remains unchanged)

Senior Citizens Savings Schme: 8.2 per cent (remains unchanged)

Monthly Income Account: 7.4 per cent (remains unchanged)

What is SSS?

Small Savings Schemes are the kinds of savings instruments which are regulated by the Central government in order to encourage citizens to save a part of their incomes at regular intervals.

The attractive feature of these schemes is that they not only yield higher and better returns than bank fixed deposits but also provide sovereign guarantees along with tax benefits.