Some small savings schemes see up to 30-basis point hike for Q3 of FY23

National Savings Certificate, Public Provident Fund rate kept unchanged

In the first hike in small savings rates since January 2019, the finance ministry on Thursday increased the interest rates payable on five of 12 such schemes for the third quarter (October-December) of the financial year ending on March 31, 2023 (FY23), leaving other interest rates unchanged.

The up to 30-basis point (bp) hike may come as a relief to small savers, farmers and senior citizens amid elevated inflation, but the fear of higher interest burden may have prevented the government from hiking small savings rates across the board, say experts.

The decision came a day after the Union Cabinet