New Delhi, Sep 20: The federal government has raised rates of interest on small financial savings schemes, together with NSC and PPF, by as much as 0.Four per cent for the October-December quarter, in keeping with rising deposit charges within the banks.
Rates of interest for small financial savings schemes are notified on a quarterly foundation.
The charges of curiosity on varied small financial savings schemes for the third quarter of economic 12 months 2018-19, beginning October 1 and ending on December 31, 2018, has been revised, the Finance Ministry mentioned whereas notifying the charges.
Rate of interest for the five-year time period deposit, recurring deposit and Senior Residents Financial savings Scheme has been raised to 7.8, 7.three and eight.7 per cent, respectively. The curiosity on the senior residents’ scheme is paid quarterly.
Nonetheless, curiosity on financial savings deposits has been retained at Four per cent, yearly.
Public Provident Fund (PPF) and Nationwide Financial savings Certificates (NSC) will fetch annual rate of interest of Eight per cent as in comparison with current 7.6 per cent, whereas Kisan Vikas Patra (KVP) will yield 7.7 per cent and mature in 112 months as towards 118 months within the earlier quarter.
The lady baby financial savings scheme Sukanya Samriddhi account will earn greater rate of interest of 8.5 per cent price, 0.Four per cent extra then the present price.
Time period deposits of one-three years will fetch 0.three per cent greater rate of interest.
Whereas asserting the quarterly setting of rates of interest in 2016, the finance ministry had mentioned that charges of small financial savings schemes can be linked to authorities bond yields.