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Interest rates on some small savings schemes hiked. Find new rates here


As per the Finance Ministry statement on Thursday, the rates of interest on various small savings schemes for the third quarter of the financial year 2022-23, starting October 1, 2022, and ending December 31, 2022, have been revised.

Here are the new rates on small savings schemes with effect from October 1

2-year Time Deposit: The interest rate is hiked by 20 basis points in the 2-year time deposit to 5.7% from their previous 5.5%.

3-year Time Deposit: Here, the interest rate has been raised by a huge 30 basis points to 5.8% from the previous 5.5%.

Senior Citizen Savings schemes: An elderly will be able to earn a massive 7.6% rate on their savings from October 1, 2022, compared to the current 7.4% — resulting in a hike of 20 basis points here in Q3FY23 from the Q2 of this fiscal.

Monthly Income Account Scheme: The interest rate here has been increased by 10 basis points to 6.7% for Q3 of FY23 compared to the current 6.6%.

Kisan Vikas Patra: The rate here is raised by also 10 basis points, however, the maturity period has been reduced by a month. This means, from October 1 till December 31 in the current year, the scheme will offer a 7% rate with a maturity period of 123 months compared to the current 6.9% which matures in 124 months.

The interest rates of small savings schemes which are kept unchanged are:

Savings deposits continue to offer a 4% rate, while a 1-year time deposit offers 5.5% and a 5-year time deposit gives 6.7%. Meanwhile, 5-year recurring deposits continue to give a 5.8% rate. There is also no change in the interest rates of the National Savings Certificate and Public Provident Fund scheme at 6.8% and 7.1% respectively. Lastly, the interest rate will be the same at 7.6% in the Sukanya Samridhi Account scheme.

The Indian government decides interest rates on small savings schemes every 3 months of a financial year. In the June 2022 quarter, the Centre kept the interest rates unchanged for these post office schemes.

Are the new rates better than PSBs FD rates? Check out some of the latest FD rates offered by some PSBs.

Indian Bank

This state-owned bank offers a 5.45% rate on 1-year FD below 2 crore. The interest rate is 5.75% on 3-years to less than 5-years FD, while the rate is 5.65% on 5-years and above tenures. Overall, the bank offers between 2.80% to 5.65% interest rates on FDs.

The bank does offer an additional rate of 0.5% per annum to senior citizens for FDs up to 10 crore. The additional rate would be offered on deposits of 15 days to 10 years over the card rate in respect of Short Term Deposits, Fixed Deposits, and Money Multiplier Deposit Schemes.

Its savings deposits interest rate ranges from 2.75% to 2.90%.

Punjab National Bank

For savings deposits below 10 lakh, PNB offers a 2.7% rate, and on deposits of 10 lakh and above — the rate is 2.75%.

In terms of FDs below 2 crore, to the general category, the bank offers a 5.5% rate on 1-year tenure, while the rate is 6.10% on 405 days tenure, at 5.5% on 406 days to 2 years tenure, 5.6% on less than 2-3 years tenure, 5.75% each on less than 3 years to 5 years tenure and 1111 days tenure. Overall, the rate is between 3% to 5.75% on these FDs.

To senior citizens, the bank offers a 6% rate on tenures from 1 year to 2 years. There is a 6.6% rate offered on just 405 days of tenure. The rate is 6.10% on less than 2 years to 3 years tenure, at 6.45% on 5-10 years tenure. While the rate is 6.25% on less than 3 years to 5 years tenure, and 1111 days tenure. Overall, the rate is between 3.5% to 6.45% on FDs below 2 crore for elderlies.

Union Bank of India

On FDs below 2 crore, the bank gives 5.35% on 1-year tenure, 5.45% on over 1 year to 2 years tenure, and 5.5% on above 2 years to 749 days. The bank offers 5.5% and 6.20% rates on tenures 750 days and 5 Years 1 Day respectively. The rate is 5.8% on above 5 years to 10 years tenure. Overall, the rates range from 3% to 6.20%.

The interest is calculated on a daily basis and is credited on a quarterly basis every year in April, July, October, and January.

In regards to savings deposits, the bank offers between 2.75% to 3.55% depending on various balances.

State Bank of India (SBI)

On savings deposits, SBI offers a 2.70% interest rate on balances up to 1 lakh and above.

Meanwhile, on FDs below 2 crore, SBI gives 5.45% to the general category, and 5.95% to senior citizens on 1 year to less than 2-year tenure. While the rate is 5.50% and 6% for the general category and senior citizens with 2 years to less than 3 years tenure.

Further, the bank offers 5.60% and 5.65% to the general category on FDs with a maturity period of 3 years to less than 5 years, and 5 years and up to 10 years. The rate is 6.10% and 6.45% for senior citizens on these tenures.

Overall, SBI’s rates range from 2.90% to 5.65% for the general category and 3.40% to 6.45% for senior citizens.

The interest rates on the above-mentioned banks’ FDs have a minimum tenure starting from 7 days to a maximum of 10 years.

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