Interest rates hike: In accordance with firming interest rates in the economy, the Central government on Friday hiked the interest rates on small deposits by up to 1.1 percentage points from January 1.
According to reports, the interest rates have also been raised on post office term deposits, National Saving Certificate (NSC) and senior citizen savings schemes.
However, the interest rates have not been changed on Public Provident Fund (PPF) and the girl child savings scheme Sukanya Samriddhi.
What would be the new rates?
The NSC will yield a 7% interest rate from January 1, compared to 6.8% at present. Similarly, the senior citizen savings scheme will give 8% interest against 7.6% currently.
Interest rates on Post office term deposit schemes of duration 1 to 5 years will rise by up to 1.1 percentage points. The monthly income scheme too will yield 7.1% interest, up from 6.7%
(With PTI inputs)