Small savings interest rates hiked after a long span of years

An attempt to encourage small savings, promote welfare of senior citizens & girl child.

The government has hiked interest rate on small savings including NSC and PPF by up to 0.4 %. The decision is aimed at encouraging small savers, girl child and improve financial security of elderly. From 1st October 2018, the government has increased returns on girl child saving scheme Sukanya Samriddhi Yojana from 8.1 % to 8.5 % and on Senior Citizen Saving Scheme from 8.3% to 8.7%.

The interest rate on almost all small saving schemes has been declining since April 1, 2012. The interest rate on popular Public Provident Fund (PPF) has been increased to 8% from 7.6%. The interest rate on PPF deposits was as high as 8.8 % on 2012. Since then it reduced gradually. Interest rate on Kisan Vikas Patra (KVP) is hiked to 7.7 % against 7.3 earlier. However, interest rate on Savings deposits has been retained at 4% annually. Term deposits of 1 to 3 years will fetch 0.3% higher interest rate that earlier.