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Government increased the interest rate on small savings
Posted on: 20/Sep/2018 1:26:23 PM
The latest announcement from the financial body of the government confirmed the increase in the interest rate for five year term deposit, recurring deposit Senior Citizens savings scheme to 7.8, 7.3 and 8.7 pc. Also the interest on saving deposits has been retained at 4 percent annually.
The official reports from the government said the increased interest rates on small savings schemes including PPF and NSC up to 0.4 percent are in line with the rising deposit rates in the banks for the period of October to December quarter. The new revision of the interest rates applicable from October 1 to December 31, 2018 as a third quarter of financial year 2018-19. The finance ministry notifies the interest rates on every quarterly basis.
The interest rate for Public Provident Fund (PPF) and National Savings Certificate (NSC) will be raised from existing 7.6 percent to 8 percent. The Kisan Vikas Patra (KVP) provides 7.7 per cent with a maturity period of 112 months against 118 months marked in the previous quarter.
The girl child savings scheme Sukanya Samriddhi account will also get a higher interest rate raised up to 8.5 percent which is an increase of 0.4 percent from the current rate. The Government bond yields will be linked in along with the small saving schemes as per the order of finance ministry. This move can lower the deposit rates in banks with small savings rate offered by the central government.
