India hikes interest rates on select small saving schemes

The government has increased interest rates on some small saving schemes for the July-September quarter. The highest increase is 0.3% for the five-year recurring deposit (RD). RD holders will now get 6.5% interest instead of 6.2%.

Interest rates on one-year and two-year term deposits have also been increased by 0.1%. They will now earn 6.9% and 7% interest respectively.

Interest rates on PPF, savings deposits, NSC, Sukanya Samriddhi, senior citizen savings scheme, and Kisan Vikas Patra have not been changed. They will continue to earn 7.1%, 4%, 7.7%, 8%, 8.2%, and 7.5% interest respectively.

The government reviews and revises interest rates on small saving schemes every quarter. The new rates will be applicable from July 1.

Here is a table summarizing the new interest rates:

SchemeInterest Rate
Five-year recurring deposit6.5%
One-year term deposit6.9%
Two-year term deposit7%
Savings deposit4%
National Savings Certificate (NSC)7.7%
Sukanya Samriddhi8%
Senior citizen savings scheme8.2%
Kisan Vikas Patra (KVP)7.5%