Details of interest rate hike on small savings

Business

20 Sep 2018

Govt hikes interest rate on small savings by upto 0.4%

The government has raised interest rates on small savings schemes, including NSC and PPF, by up to 0.4% for the third quarter of the financial year 2018-19, starting October 1 and ending on December 31, 2018, in line with rising deposit rates in the banks.

Interest rates for small savings schemes are notified on a quarterly basis by the Finance Ministry.

Here's more.

Interest rate for Senior Citizens Savings Scheme raised to 8.7%

The 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%, respectively. The interest on the senior citizens' scheme is paid quarterly. However, interest on savings deposits has been retained at 4%, annually.

Details

Interest rate of Sukanya Samriddhi scheme raised to 8.5%

Interest rate of Sukanya Samriddhi scheme raised to 8.5%

Public Provident Fund (PPF) and National Savings Certificate (NSC) will fetch an annual interest rate of 8% compared to existing 7.6%, while Kisan Vikas Patra (KVP) will yield 7.7% and mature in 112 months as against 118 months in the previous quarter.

Girl child savings scheme Sukanya Samriddhi account will earn a higher interest rate of 8.5% rate, 0.4% more than the current rate.

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Lowering deposit rates

One-three years' term deposits to earn 0.3% higher interest rate

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

While announcing the quarterly setting of interest rates in 2016, the Finance Ministry had said that rates of small savings schemes would be linked to government bond yields.

The move is expected to see banks lowering their deposit rates in line with the small savings rate offered by the government.

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Finance Ministry

National Savings Certificate

Public Provident Fund

Kisan Vikas Patra

KVP

Nsc

PPF

Senior Citizens Savings Scheme

Sukanya Samriddhi

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Most asked questions

How much is the interest rate for term deposits of two years?

What is the interest rate for Sukanya Samriddhi scheme?

What is the interest rate for the Senior Citizens Savings Scheme?

More questions

How much is the interest rate for term deposits of two years?

Asked 2018-09-20 17:09:22 by Anonymous

Answered by NewsBytes

The term deposits of one-three years will fetch 0.3% higher interest rate. The Finance Ministry had said that rates of small savings schemes would be linked to government bond yields.

What is the interest rate for Sukanya Samriddhi scheme?

Asked 2018-09-20 17:08:29 by Anonymous

Answered by NewsBytes

The government has raised the interest rate for Girl child savings scheme Sukanya Samriddhi to 8.5% rate, 0.4% more than the current rate.

What is the interest rate for the Senior Citizens Savings Scheme?

Asked 2018-09-20 17:07:49 by Anonymous

Answered by NewsBytes

The Interest rate for the Senior Citizen Savings Scheme has been raised to 8.7% by the Government of India. The interest on the senior citizens' scheme is paid quarterly.

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