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Union government hikes small savings schemes interest rate

New Delhi: The Union government hiked the interest rates of some small savings schemes. The interest rates are hiked by 30 basis points (bps).

After the new hike, a 3-year time post office deposit will fetch 5.8% interest rate. It is now at 5.5%.  There is no change in the rates of one-year and five-year time deposits. They will continue to fetch interest rates of 5.5% and 6.7%, respectively.

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Senior Citizen Savings scheme will earn 20 basis points more to 7.6% from the existing rate of 7.4. The tenure and interest rates  of Kishan Vikas Patra (KVP) has been hiked.  Now interest rate for KVP is 7% for the maturity period of 123 months, compared to the earlier 6.9% for maturity period of 124 months.

The interest rates of popular schemes such as Public Provident Fund (7.1%), Sukanya Samriddhi Account Scheme (7.6%), savings deposits (4%) and National Savings Certificates (6.8%) were not changed.

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