Govt revises interest rate on small savings schemes for third quarter

The 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 small savings schemes for the quarter beginning 1 October.

This means small savings schemes such as the Fixed Deposits of two, three years, Senior Citizen Savings Scheme (SSCS), etc will fetch more interest rates for the third quarter.

However, savings deposit, one, five year FDs, National Savings Certificate (NCS), Sukanya Samriddhi Yojana, Public Provident Fund (PPF) will continue to fetch/earn the same interest rates.

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.

The interest rate for monthly income account scheme has also been hiked to 6.7% from current 6.6%.