Small savings rates steady till December, 5-year recurring deposit rate raised to 6.7%: FinMin
The government raised the interest rate on five-year recurring deposit scheme to 6.7 per cent from 6.5 per cent for the October-December quarter and retained the rates for all other small savings schemes 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. The rates were the same during the July-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, according to the circular.
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.
The interest rate on the popular girl child scheme Sukanya Samriddhi Account has been retained at 8 per cent, according to the circular. The government notifies the interest rate on small savings schemes, majorly operated by post offices, every quarter.
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