New Delhi: The government on Thursday raised the interest rates on small saving schemes, including National Savings Certificates (NSC), Public Provident Fund (PPF) and Kisan Vikas Patra (KVP), for the third quarter of the fiscal (October-December). A Finance Ministry notification said that for time deposits of less than 5 years the interest increases by 0.3 percentage point, while it would go up by 0.4 percentage point for others. The PPF and NSCs will earn 8 percent interest from October 1, 2018, while KVPs will earn 7.7 percent. The PPF, NSC, and KVP are currently offering 7.6, 7.6 and 7.3 percent interest, respectively.
While the Senior Citizen’s Savings Scheme of the five-year period will offer 8.7 percent interest, the Sukanya Samriddhi Yojana for the girl child will offer 8.5 percent. The government retained the interest on savings deposits at 4 percent, compounded annually. The new interest rates are in line with the hike announced by India’s central bank in key interest rates. (IANS)