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
The Government announces the Revision of interest rates for Small Savings Schemes for the Third Quarter of the current Financial Year 2018-19 starting 1st October, 2018, and ending on 31st December, 2018; For full details, pl log on: https://t.co/WjpRhcqPRW— Ministry of Finance (@FinMinIndia) September 20, 2018
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%.
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.