The government has increased the interest rate on the 5-year Recurring Deposit (RD) for the December quarter to 6.7 percent. The new interest rates will be effective from October 1st. However, there have been no changes in the interest rates of other small savings schemes. It is worth mentioning that the government revises the interest rates for small savings schemes at the end of every quarter and determines the rates for the next quarter.
There have been no changes in the interest rates for term deposits, and investors are being offered an interest rate ranging from 4 to 8 percent on existing time deposits in small savings schemes. An interest offer of 7.1 percent is being made on Public Provident Fund (PPF). According to the notification issued by the Ministry of Finance on Friday, an interest rate of 6.9 percent is being offered on a one-year term deposit, 7 percent on a two-year term deposit, 7 percent on a three-year term deposit, and 7.5 percent on a five-year term deposit.
7.1 percent interest offer is being made to investors on the Public Provident Fund (PPF). There have been no changes in the interest rates on PPF since April 2020.
For the quarter from October to December, the interest rates for Senior Citizen Savings Scheme, Monthly Income Account Scheme, National Savings Certificate, Kisan Vikas Patra, and Sukanya Samriddhi Scheme have been kept stable. Investors will be offered interest rates of 8.2 percent, 7.4 percent, 7.7 percent, 7.5 percent, and 8 percent in the Senior Citizen Savings Scheme, Monthly Income Account Scheme, National Savings Certificate, Kisan Vikas Patra, and Sukanya Samriddhi Scheme respectively. Meanwhile, 4 percent interest is being provided on savings deposits.
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