MeraNews Network, New Delhi: After the latest Reserve Bank of India data showed that fresh investments in small savings schemes like Post Office Savings, Senior Citizen Savings, and Public Provident Fund has dropped almost to nil, the government on Thursday hiked the interest rates by 0.4 percent for the October-December quarter.
The five years Senior Citizen Savings Schemes, which was previously interested at 8.3 percent quarterly has now increased to 8.7 percent. PPF and National Savings Certificate will be interested annually at 8 percent, while Kisan Vikas Patra will yield 7.7 percent.
The interest on savings deposit will remain at 4 percent though. The Sukanya Samriddhi Yojna will now offer 8.5 percent interest. This is a relief for investors from fixed income group as the rate had remained unchanged for the past two quarters. Instead, the government had reduced the interest rates for the January-March 2018 quarter.