Interest rates on Deposit schemes raised by GOI effective Jan. 01
New Delhi: The government today raised interest rates on most post office savings schemes that do not get income tax benefits, in line with the firming of interest rates in the economy.
While the interest rate for popular PPF (Public Provident Fund) and girl child savings scheme Sukanya Samriddhi were retained, rates for deposits up to 5 per cent as well as NSC (National Savings Interest Rate), senior citizen savings scheme and Kisan Vikas Patra (KVP) where income accruing is taxable have been hiked by up to 1.1 percentage points, according to a finance ministry notification.
This is the second quarter of an increase in a row in interest rates for some schemes. This follows a status quo or unchanged rates for nine straight quarters. Interest rates for small savings schemes are notified on a quarterly basis.
With the revision, a one-year term deposit with post offices would earn 6.6 per cent, for two years (6.8 per cent), three years (6.9 per cent) and five years (7 per cent).
The Senior Citizen Savings scheme will earn 40 basis points more at 8 per cent during the January-March period, the notification said.
These steps will help Govt. to raise a huge amount of deposits to meet is kitty at lower costs, to mee demands for several development projects.
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