Govt Increases Interest Rates on NSC, Post Office Deposits

The government has announced a hike in interest rates on small deposit schemes. These include Post Office Fixed Deposit, NSC (National Savings Certificate) and Senior Citizen Savings Scheme. Under the strengthening of interest rates in the economy, it has been announced to increase the interest rate of these deposit schemes by 1.1 percent from January 1.

However, the interest rates on Public Provident Fund (PPF) and Girl Child Savings Scheme Sukanya Samriddhi have not been changed. National Savings Certificate (NSC) will get seven percent interest from January 1, currently it is 6.8 percent. Similarly, Senior Citizens Savings Scheme will get 8 percent interest as against the present 7.6 percent.

Interest rates of term deposit schemes increased by up to 1.1%

Interest rates on post office term deposit schemes of one to five years duration will increase to 1.1 percent from January 1, 2023. In the monthly income scheme also, the interest rate has been increased from 6.7 percent to 7.1 percent. The increase in the interest rates of small deposit savings schemes is being seen as a New Year gift from the Modi government. At present, this increase has been done for the January to March quarter.

The government has increased the interest rate on the one-year savings scheme of the post office to 6.6% from 5.5% earlier. While the 2-year scheme will get interest at the rate of 6.8%, which was earlier 5.7%. The interest rate on the 3-year scheme has been increased to 6.9%, which was earlier 5.8%. At the same time, interest will be given at the rate of 7% on the five-year scheme, it was earlier 6.7 percent.

Interest rates are reviewed on a quarterly basis

The Central Government reviews the interest rates of small savings schemes on a quarterly basis. The formula for calculating the interest rate for small budget schemes was given by the Shyamala Gopinath Committee. As per the recommendations of the committee, the interest rates of various schemes should be 25 to 100 bps higher than the central government bond yields of similar maturity.

Retail inflation for industrial workers eased to 5.41 per cent in November on lower prices of some food articles. It was 6.08 per cent in October. The Labor Bureau attached to the Ministry of Labor and Employment gave this information in a statement on Friday. Accordingly, retail inflation for industrial workers in November 2021 was 4.84 per cent. Food inflation stood at 4.30 per cent last month, while it was 6.52 per cent in October and 3.40 per cent in November 2021.

According to the data, the Consumer Price Index for Industrial Workers remained stable at 132.5 points in November 2022. This index is prepared on the basis of data collected from 88 centres.

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