The new rates take effect immediately and apply to a range of savings instruments, including the Special Savings Certificate and Special Savings Account.

Under the revised structure, the annual return has been increased from 12.4% to 13.6%. This means a certificate worth Rs 100,000 will now generate a profit of Rs 6,200 in the first half-year period and Rs 6,800 in the second.

The government has also set the annual profit rate on the Defence Savings Certificate at 10%, with returns increasing over a five-year maturity period, reaching up to 67% cumulatively, according to the notification.

Taxation on profit income remains differentiated, with 15% tax applied to filers and 30% for non-filers.

Officials said the revision is aimed at improving returns for savers and encouraging participation in formal savings instruments amid shifting economic conditions.