Finance Ministry announces hike in interest rate for small saving schemes

Finance Ministry has decided to increase the interest rate of Small Savings Schemes by 0.3-0.4 per cent which is a welcome move


The central government has decided to increase the interest rates of small savings schemes such as Public Provident Fund (PPF), National Security Certificates (NSC), Sukanya Samriddhi Yojana (SSY), and others by 0.4 per cent for the third quarter of the financial year 2018-2019. Finance Ministry issued a circular notifying the revisions of interest rates of various small saving schemes.

Earlier, the interest rates have remained unchanged for the past two quarters. However, this revision will be effective, from October 1 to December 31, until the next review. 

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The one-year, two-year, three-year time deposit has been hiked by 0.3 per cent and SSY account’s have been revised with the interest rate increased to 8.5 per cent from 8.1 per cent. 

The interest rate of five-year time and recurring deposit followed by five years Senior Citizen Savings Scheme have been increased to 7.8 per cent, 7.3 per cent, and 8.7 per cent, respectively. However, the Saving deposits interest rate remains unchanged at 4.0 per cent.