Interest rates on NSC, post office deposits hiked; no change in PPF rate

The Union government on Friday (December 30) hiked the interest rates on small deposits — including post office term deposits, NSC and senior citizen savings scheme — by up to 1.1 percentage points in line with firming interest rates in the economy. The changes kick off on January 1, 2023.

However, the interest rates on Public Provident Fund (PPF) and the girl child savings scheme Sukanya Samriddhi have not been changed.

National Savings Certificate (NSC) will yield a 7 per cent interest rate from January 1, compared to 6.8 per cent at present. Similarly, the senior citizen savings scheme will give 8 per cent interest against 7.6 per cent currently.

Interest rates on post office term deposit schemes of duration 1 to 5 years will rise by up to 1.1 percentage points.

The monthly income scheme too will yield 7.1 per cent interest, up from 6.7 per cent.

With agency inputs