The government has hiked interest rates on select saving schemes by up to 30 basis points for the July-September quarter.

The interest rates of schemes like the 1-and 2-year post office time deposit, 5-year recurring deposits have been raised.

The interest rate on the Public Provident Fund (PPF), however, has been unchanged at 7.1%.

The highest increase of 30 basis points was for the five-year recurring deposit (RD). During the second quarter of the current fiscal, RD holders would get 6.5% versus the existing 6.2%, as per the finance ministry notification.

A one-year term deposit with post offices will now earn 10 basis points higher at 6.9% and for the two years tenor, it will be 7%, up from 6.9%.

However, interest rates on term deposits for three years and five years have remained unchanged at 7% and 7.5%. 

The interest rate on the National Savings Certificate (NSC) remained unchanged at 7.7% for the quarter ended 30 September. 

The new rate for the girl child savings scheme Sukanya Samriddhi too stood at the existing level of 8%.

The interest rate on the senior citizen savings scheme and Kisan Vikas Patra (KVP) is 8.2% and 7.5%, respectively.

Interest rates were increased in the last (January-March) quarter as well as the April-June quarter.

Interest rates for small savings schemes are notified on a quarterly basis.

There is no increase in interest rate for Monthly Income Scheme, and this will earn 7.4% for the investors.

The Reserve Bank since May 2022 has raised the benchmark lending rate by 2.5% to 6.5%.

The RBI has maintained the status quo on policy rate in the last two consecutive Monetary Policy Committee meetings.