From January to March 2024, the government will raise interest rates on modest savings plans by 10–20 basis points

 From January to March 2024, the government will raise interest rates on modest savings plans by 10–20 basis points

From January to March 2024, the government will raise interest rates on modest savings plans by 10–20 basis points

The government raised the interest rate on a modest savings plan by 20 basis points for the months of October through December on September 29.

Despite being established by the government, interest rates on modest savings plans are based on market yields on government securities and are spread between 0 and 100 basis points above the yield on these assets with similar maturities.

For the sixth consecutive quarter, the federal government has raised the interest rates on two modest savings plans by 10–20 basis points, covering the period from January to March 2024.

After nine straight quarters of no change, the Finance Ministry began raising interest rates on modest deposits in October 2022 and continued to do so through December 2022.

A statement from the Finance Ministry on December 29 states that the interest rate on three-year fixed deposits has risen from 7.0 percent to 7.1 percent, a 10 basis point increase. In addition, for the January–March 2024 term, the interest rate on the Sukanya Samriddhi Account Scheme has been raised by 20 basis points to 8.2 percent. One tenth of a percentage point is equal to one basis point.

The interest rates offered by all other modest savings plans will stay the same from October through December.

Moneycontrol has said on December 28 that interest rates on modest savings plans would receive a tiny hike from January to March of 2024.