Government Revised Interest Rates for NSC, PPF and Other Small Savings Schemes
The government of India has released a memorandum revising the interest rates for Small Savings Schemes.
Details of the Revision
Here are the details of the revised rates-
|
Instruments |
Rate of Interest |
|
1 Year time deposit |
6.9% |
|
2 Year time deposit |
7.0% |
|
3 Year time deposit |
7.0% |
|
5 Year time deposit |
7.5% |
|
5 year recurring deposit |
6.7% |
|
Senior citizen savings scheme |
8.2% |
|
Monthly Income account |
7.4% |
|
National Savings Certificate |
7.7% |
|
Public Provident Fund Scheme |
7.1% |
|
Kisan Vikas Patra |
7.5% |
|
Sukanya Samriddhi Yojana Scheme |
8.0% |
With immediate effect, the interest rates of term deposits, Kisan Vikas Patra, National Savings Certificate, Public Provident Fund, and a few other Small Savings Schemes have changed from the last quarter.
Why Have the Rates Been Changed?
The government always reviews the interest rates on Small Savings Schemes every quarter. The revision is based on bond yields. Last month, the Economic Affairs Secretary had hinted towards this revision to ensure faster transmission of the monetary policy rate.