Hike in interest rates: In view of the strengthening of interest rates in the economy, the central government on Friday increased the interest rates on small deposits by up to 1.1 percent with effect from January 1.
According to reports, interest rates have also been increased on Post Office Term Deposits, National Savings Certificate (NSC) and Senior Citizen Savings Schemes.
However, interest rates on Public Provident Fund (PPF) and Girl Child Savings Scheme Sukanya Samriddhi have not been changed.
What will be the new rates?
NSC will get an interest rate of 7% from January 1, while it is currently 6.8%. Similarly, the Senior Citizens Savings Scheme will offer 8% interest as against 7.6% at present.
Interest rates on post office term deposit schemes for a period of 1 to 5 years will increase by 1.1 percent. Interest will be increased from 6.7% to 7.1% in the monthly income scheme.
(With PTI inputs)