A relief for savers fro the government. Small saving schemes such as Public Provident Fund (PPF), National Savings Certificates and Post Office Deposit Scheme will fetch more in the three months period starting October 1.
The government has raised interest rates for the October December quarter of the current financial year of small savings schemes such as National Savings Certificate (NSC), Public Provident Fund (PPF), Kisan Vikas Patra (KVP), among others by up to 40 bps.
Revision in new rate means money accumulated till September 30 will get an interest rate at existing rates while fresh deposit between October 1 and December 31 will get higher interest.
The circular issued by the Finance Ministry shows the interest rates of various small saving schemes have been hiked by between 30 basis points and 40 basis points. However, the interest rate on the post office savings account balance has been kept unchanged at 4 per cent.
The last revision in interest rates was made in January-March quarter of 2017-18, after which the finance ministry kept them unchanged for two quarters.