Interest rates on small savings schemes increased by the Finance Ministry

There is a good news for people who invest in small savings schemes. The central government has increased interest rates in the October-December quarter for many small savings schemes including National Savings Certificate (NSC) and PPF. All schemes have been increased by 0.4 percent. Interest rates for small savings schemes are revised on a quarterly basis. PPF and NSC will now get interest at 8% per annum.

In the notification issued in the Finance Ministry, interest rates for various small savings schemes are revised for the third quarter of FY 2018-19. The interest rate of Fixed Deposit Fixed Deposits, Recurring Deposits and Senior Citizens Savings Scheme has been increased to 7.8 percent, 7.3 percent and 8.7 percent, respectively. However, the interest rate for savings deposit is 4 percent. Now, the existing 7.6 percent on PPF and NSC will get an interest rate of 8 percent now. On Kashin Vikas Patra, interest will now be 7.7 percent and now it will get mature in 112 weeks. The revised interest rate for Sukanya prosperity accounts will be 8.5 percent. Interest rate on fixed deposit of one to three years has been increased by 0.3 percent.