All about new interest rates on small savings

Business

20 Sep 2018

Small savings rate hiked by Modi government: Details here

On Thursday, the Modi government announced new interest rates for small savings schemes, including the National Savings Certificate (NSC), and the Public Provident Fund (PPF).

Interest rates have now been hiked by up to 0.4%, and the new rates will be applicable on eligible small savings from October 1 to December 31.

Here are the details.

Ministry of Finance announces the rate revisions on Twitter

Revised rates

NSC, PPF schemes will fetch 8% interest now

Savings under NSC and PPF schemes will now fetch interest of 8%, up from the earlier 7.6%.

Meanwhile, term deposits and recurring deposits will fetch interest rates in the range of 6.9-7.9%, compared to 6.6-7.4% earlier.

Additionally, the interest rate for Senior Citizens Savings Scheme (SCSS) has been increased to 8.7% from 8.3%.

However, the savings deposit interest rate has been kept at 4%.

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Other revisions

Interest on KVP, Sukanya Samriddhi savings schemes have been revised

For the Kisan Vikas Patra (KVP) scheme, the Finance Ministry has revised interest rates as well as the maturity period.

Currently, KVP accounts fetch an interest rate of 7.3% over 118 months.

However, from October 1, KVP accounts will fetch an interest of 7.7% over 112 months.

Meanwhile, interest on savings under the Sukanya Samriddhi scheme has been increased to 8.5% from 8.1% earlier.

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Finance Ministry

Small Savings Scheme

Kisan Vikas Patra

KVP

Modi

National Savings Certificate

Nsc

PPF

Public Provident Fund

SCSS

Senior Citizens Savings Scheme

Sukanya Samriddhi

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Most asked questions

What is the new interest rate for Kisan Vikas Patra scheme?

How much interest rate will be applied on savings account under the PPF scheme?

More questions

What is the new interest rate for Kisan Vikas Patra scheme?

Asked 2018-09-20 17:12:36 by Anonymous

Answered by NewsBytes

The revised interest rate for Kisan Vikas Patra (KVP) Scheme is 7.7%. Currently, KVP accounts fetch an interest rate of 7.3% over 118 months. However, from October 1, KVP accounts will fetch an interest of 7.7% over 112 months.

How much interest rate will be applied on savings account under the PPF scheme?

Asked 2018-09-20 17:10:42 by Anonymous

Answered by NewsBytes

The interest rate to be applied on savings account under the PPF scheme will be 8%. On September 20, the Modi government announced new interest rates for small savings schemes, including the National Savings Certificate (NSC), and the Public Provident Fund (PPF).

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