The Narendra Modi-led NDA government on Thursday announced new interest rates on small savings schemes, including National Savings Certificate (NSC) and Public Provident Fund (PPF). The interest rates on Kisan Vikas Patra (KVP) will be revised on a quarterly basis. According to the Ministry of Finance, the interest rates for small savings schemes have also been hiked by up to 0.4 per cent for the October-December quarter and the revised rates would be applicable from October 1, 2018, to December 31, 2018.
Here are 10 things to know:
1) The Public Provident Fund (PPF) will fetch an annual interest rate of 8 percent as compared to existing 7.6 percent.
2) The National Savings Certificate (NSC) will fetch an annual interest rate of 8 percent as compared to existing 7.6 percent.
3) The Kisan Vikas Patra (KVP) will yield 7.7 percent and will mature in 112 months as against 118 months in the previous quarter.
4) Sukanya Samriddhi account will earn a higher interest rate of 8.5 percent.
5) Term deposits will now fetch interest rates in the range of 6.9-7.8 percent, as against 6.6-7.4 percent earlier.
6) Recurring deposit accounts will now fetch interest rates in the range of 6.9-7.8 per cent, as against 6.6-7.4 percent earlier.
7) The interest rate on savings deposits has been retained at 4 percent.
8) The interest rate for the five-year term deposit has been raised to 7.8 percent.
9) The interest rate for recurring deposit Senior Citizens Savings Scheme (SCSS), which is paid quarterly, has been raised to 8.7 percent.
10) However, there is no change in the compounding frequency of the small savings schemes, the finance ministry said.