Finance Ministry sharply raises small savings rates for March quarter

Small savings rates for 1-year time deposit (6.6 per cent), 2-year time deposit (6.8 per cent) and 3-year time deposit (6.9 per cent) were raised by 110 bps

The Centre on Friday sharply raised interest rates on eight out of 12 small savings schemes for the January-March quarter of FY23.
 
Small savings deposit rates for one year, two years and three years were raised by 110 basis points (bps) to 6.6 per cent, 6.8 per cent and 6.9 per cent, respectively.
 
Earlier, the rates were 5.5 per cent, 5.7 per cent and 5.8 per cent, respectively, for the three tenors.
 
The five-year deposit saw interest rate raised by 30 bps to 7 per cent from 6.7 per cent.
 
Among other key government-backed savings instruments,