BackGovt revises interest rate on small savings schemes for third quarter
The interest rate for senior citizens savings scheme has been hiked to 7.6% from 7.4%, for Kisan Vikas Patra to 7% from 6.9% and also increased for two, three-year time deposits
PremiumThe Central Government on Thursday announced the small savings scheme interest rates for the third (October-December) quarter. This time, the government has raised the interest rate by up to 30 basis points on some small savings schemes for the quarter beginning 1 October.
This means small savings schemes such as the Fixed Deposits of two and three years, Senior Citizen Savings Scheme (SSCS), etc will fetch more interest rates for the third quarter.
However, savings deposit, one and five year FDs, National Savings Certificate (NCS), Sukanya Samriddhi Yojana, Public Provident Fund (PPF) will continue to fetch/earn the same interest rates.
What other small savings schemes will fetch from next month
The interest rate for senior citizens savings scheme has been hiked to 7.6% from 7.4%, for Kisan Vikas Patra to 7% from 6.9%. The government has also increased interest rate for two, three-year time deposits. The interest rate for monthly income account scheme has also been hiked to 6.7% from current 6.6%.
This is the first time small savings rates have been hiked since the January to March quarter of 2019, just ahead of the last Lok Sabha polls. The rates had been kept unchanged since the April to June quarter of 2020 when they were slashed across schemes.
The Reserve Bank of India since May has raised the benchmark lending rate by 140 basis points, prompting banks to raise interest rates on deposits as well.
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