New Delhi : After maintaining status quo for 10 straight quarters, the Center has revised interest rates on five small savings schemes including Senior Citizen Savings Scheme (SCSS) and Kisan Vikas Patra (KVP) by 30 basis points for October-December Duration.
One basis point is one hundredth of a percentile.
The Department of Economic Affairs on Thursday increased the interest rates on three-year post office fixed deposits from 5.5% to 5.8% and on two-year fixed deposits from 5.5% to 5.7%. Interest payment on SCSS and KVP has been increased by 20 bps and 10 bps respectively. The tenure of the KVP scheme will now be 123 months at an interest rate of 7% as against 6.9% earlier.
The Post Office Monthly Income Scheme will pay a higher interest rate of 10 bps at 6.7% for the December quarter. Other popular schemes like Public Provident Fund, National Savings Certificate and Sukanya Samriddhi Yojana will continue to pay interest rates of 7.1%, 6.8% and 7.6% respectively as before.
These small savings schemes are popular among the salaried class for tax savings, and their returns are higher than bank fixed deposits.
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