Interest Rates On Small Savings, Senior Citizens Scheme Raised

New Delhi: The central government has hiked interest rates on small savings schemes, including National Savings Certificate (NSC) and Public Provident Fund (PPF), by up to 0.4 per cent for the October-December quarter, in line with rising deposit rates in the banks.

Interest rates for small savings schemes are notified on a quarterly basis. The rates of interest on various small savings schemes for the third quarter of financial year 2018-19, starting October 1 and ending on December 31, 2018, has been revised, informed the Finance Ministry.

Interest rate for the five-year term deposit, recurring deposit Senior Citizens Savings Scheme has been raised to 7.8, 7.3 and 8.7 per cent, respectively.

However, interest on savings deposits has been retained at four per cent, annually.

Public Provident Fund (PPF) and National Savings Certificate (NSC) will fetch annual interest rate of eight per cent as compared to existing 7.6 per cent, while Kisan Vikas Patra (KVP) will yield 7.7 per cent and mature in 112 months as against 118 months in the previous quarter.

The girl child savings scheme Sukanya Samriddhi account will earn higher interest rate of 8.5 per cent rate, 0.4 per cent more than the current rate.

Term deposits of one-three years will fetch 0.3 per cent higher interest rate.

The three-year post office deposit will now fetch 7.2 per cent as against 6.9 per cent, and similarly, two-year deposit 7 per cent and the one-year deposit 6.9 per cent.