Govt hikes interest rate to 6.7 pc on 5-year RD, retains rate on other small savings schemes
A finance ministry circular said the interest rate on savings deposit has been retained at 4 per cent and the one-year term deposit at 6.9 per cent
The interest rate on five-year recurring deposit scheme has gone up to 6.7 per cent from 6.5 per cent, while there are no changes in the rates for all other small savings schemes for the December quarter, said the government on Friday (September 29).
According to a finance ministry circular, the interest rate on savings deposit has been retained at 4 per cent and on the one-year term deposit at 6.9 per cent. These rates were the same in the September quarter.
The interest rate on both the two-year and three-year term deposits is 7 per cent, while on the five-year term deposit, the rate is 7.5 per cent.
Senior citizens savings scheme will fetch an interest rate of 8.2 per cent. On the monthly income account scheme, the interest rate is 7.4 per cent while it is 7.7 per cent on the National Savings Certificate and 7.1 per cent on the Public Provident Fund (PPF) scheme.
The interest rate on the Kisan Vikas Patra is 7.5 per cent and the investments will mature in 115 months. As per the circular, the interest rate on the popular girl child scheme Sukanya Samriddhi Account has been retained at 8 per cent.
The government notifies the interest rate on small savings schemes, majorly operated by post offices, every quarter.
(With inputs from agencies)