In a major decision, the government announced new interest rates on small savings schemes.
This includes the well known schemes such as National Savings Certificate (NSC) and Public Provident Fund (PPF).
As per the reports, the interest rates for small savings schemes were hiked by up to 0.4 per cent for the October-December quarter.
The revised rates would be applicable from October 1, 2018 to December 31, 2018, the government said.
The interest rates on small savings schemes, including Kisan Vikas Patra (KVP) and Sukanya Samriddhi, are revised on a quarterly basis.
With the hike, the interest rates on NSC and PPF have been revised to 8 per cent from 7.6 per cent at present.
The interest rate for the Senior Citizens Savings Scheme (SCSS) has been raised 8.3 per cent from 8.7 per cent.
Likewise, in case of Kisan Vikas Patra (KVP), it will fetch an interest rate of 7.7 per cent over a maturity period of 112 months.
This is in contrast to the KVP accounts earning a return of 7.3 per cent over a term of 118 months.
Likewise, the investment in Sukanya Samriddhi (a savings scheme focused on the girl child) will earn interest at the revised rate of 8.5 per cent, which is 0.4 per cent higher than the existing rate.>