GOI Announces Small Savings Scheme Interest Rates for December 2023 Quarter

New Delhi, September 30, 2023 – The Indian government has unveiled the interest rates for various small savings schemes for the quarter ending December 31, 2023. The Ministry of Finance released a circular today, outlining the rates for popular schemes including Public Provident Fund (PPF), Sukanya Samriddhi, Senior Citizens Savings Scheme (SCSS), and National Savings Certificate (NSC).

Government new saving schemes

Changes in Interest Rates

The most notable change in this quarter’s interest rates is the 0.2% increase in the 5-year post office recurring deposit (RD), which will now yield 6.7%. However, the interest rate for the Public Provident Fund (PPF) remains unchanged at 7.1%. All other small savings schemes have maintained their existing interest rates.

Review Process

The government regularly reviews the interest rates on small savings schemes every quarter. The criteria for determining these rates are based on the recommendations of the Shyamala Gopinath Committee. According to the committee’s guidelines, the interest rates for these schemes should typically be 25-100 basis points higher than the yields of government bonds with similar maturity periods.

Market Expectations

Market analysts had previously predicted that small savings scheme interest rates would remain largely stable for the October-December 2023 quarter. This forecast was primarily due to the steady rates of the 10-year Government Security (G-Sec) yield in the secondary market, which hovered around 7.0%-7.2%. While there were slim chances of rate hikes, some experts speculated that upcoming assembly and central elections might influence the government’s decisions.

Comparison with Other Investment Options

Despite increasing interest rates offered by banks on fixed deposits (FDs), small savings schemes continue to provide attractive returns. For instance, the State Bank of India (SBI) offers FDs with interest rates ranging from 3% to 7%, while senior citizens can earn up to 7.5% on their deposits. In comparison, several major banks, including SBI and ICICI Bank, offer lower interest rates on their savings accounts, with the post office savings account currently offering 4% per annum.


The government’s decision to maintain the interest rates on most small savings schemes for the December 2023 quarter reflects the stability in the financial market. While other investment options like fixed deposits are becoming more attractive, small savings schemes remain a reliable choice for risk-averse investors seeking steady returns.

Investors and savers are advised to consider their financial goals and risk tolerance when deciding between various savings and investment avenues in the current financial landscape.

Here’s a table summarizing the previous and current interest rates for select small savings schemes in India:

Small Savings
Interest Rate (%)
Interest Rate (%)
Public Provident
Fund (PPF)
7.1% 7.1%
5-year Post Office RD 6.5% 6.7%
Senior Citizens Savings Scheme (SCSS) 7.4% 7.4%
National Savings Certificate (NSC) 6.8% 6.8%
Sukanya Samriddhi Yojana Not specified Not specified

Please note that the interest rate for Sukanya Samriddhi Yojana (SSY) is not specified in the provided information.

Finances rule


Are there any changes in the interest rates for the Sukanya Samriddhi Yojana (SSY) for the December 2023 quarter?

A: The provided information does not specify any changes in SSY interest rates for this quarter.

How often does the government review the interest rates on small savings schemes?

A: The government reviews these rates every quarter to ensure they align with prevailing market conditions.

What is the interest rate offered on the 5-year Post Office Recurring Deposit (RD) for December 2023?

A: The interest rate on the 5-year Post Office RD has been increased to 6.7% for this quarter.

How do the interest rates of small savings schemes compare to those of fixed deposits (FDs) in banks?

A: Small savings schemes often offer more competitive interest rates than bank FDs, making them an attractive choice for risk-averse investors.

Why have the interest rates on most small savings schemes remained unchanged for the December 2023 quarter?

A: The stability of the 10-year Government Security (G-Sec) yield in the secondary market, around 7.0%-7.2%, has influenced the decision to keep most small savings scheme rates unchanged.

Financesrule telegram

Author: Sanjib SahaSanjib is a finance based writer who has a deep knowledge in stock market, cryptocurrency and mutual funds. He is also a co-founder of Financesrule.com

Leave a Reply