Government Increases Interest Rate on Particular Small Savings Program

The government recently announced that, with one important exception, it will keep the current interest rates for the majority of modest savings programs. The interest rate on one program has gone up by 20 basis points. Every quarter, the government analyzes and adjusts the interest rates on a number of minor savings programs. The interest rates for the National Savings Certificate, 1- and 2-year post office deposits, as well as 5-year recurring deposits, were modified at the most recent June quarter revision.

The modest savings interest rates for the December quarter are as follows:

Deposit of savings: 4%

Time deposit for a year: 6.9%

Deposit for two years: 7%

Deposit for three years: 7%

Time deposit for 5 years: 7.5%

6.7% for a 5-year recurring deposit (up 0.2%).

Savings program for seniors: 8.2%

Scheme for monthly income accounts: 7.4%

Certificate of National Savings: 7.7%

7.4% Public Provident Fund

115-month maturity and 7.4% yield for Kisan Vikas Patra

Scheme for Sukanya Samriddhi: 8%

Updates will continue to be sent as this situation progresses.