Govt announces 1.1 percentage points hike to interest rates on small deposits

The government on Friday raised interest rates on small deposits – including post office fixed deposits, NSC and senior citizens savings scheme – by 1.1 percentage points with effect from January 1, in line with firming interest rates in the economy.

However, interest rates on Public Provident Fund (PPF) and Girl Child Savings Scheme Sukanya Samriddhi have not been changed.

National Savings Certificate (NSC) will get an interest rate of 7 per cent from January 1, while at present it is 6.8 per cent. Similarly, the Senior Citizen Savings Scheme will get 8 percent interest as against 7.6 percent.

Interest rates on post office term deposit schemes for a period of 1 to 5 years will increase by 1.1 percent.

Monthly income scheme will also get interest from 6.7 percent to 7.1 percent.

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