The government has hiked the interest rates on Sukanya Samriddhi scheme by 20 basis points and three-year term deposit scheme by 10 basis points for the January-March quarter.

The rates for all other small savings schemes have been unchanged. 

According to a finance ministry circular, the deposit under Sukanya Samriddhi scheme would attract an interest rate of 8.2% from the existing 8%, while the 3-year term deposit would become 7.1% from the current 7%.

However, the interest rates for popular PPF and savings deposits have been retained at 7.1% and 4%, respectively.

The rates were the same during the December quarter.

The interest rate on the Kisan Vikas Patra is 7.5% and the investments will mature in 115 months.

The interest rate on the National Savings Certificate (NSC) remained unchanged at 7.7% for the period between 1 January 1 to 31 March 2024.

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

The government notifies the interest rate on small savings schemes, majorly operated by post offices, every quarter.

The Reserve Bank since May 2022 has raised the benchmark lending rate by 2.5 per cent to 6.5 per cent, prompting banks to raise interest rates on deposits as well.

However, the RBI has maintained the status quo on policy rate in the last five consecutive Monetary Policy Committee meetings since February this year.