Govt Hikes Interest Rates On NSC, Senior Citizens Scheme & Post Office Deposits

The government today announced a hike in the interest rates for Post Office Term Deposits, the National Savings Certificates and also on time deposits or term deposits. Interest rates on Public Provident Fund (PPF) and the Sukanya Samriddhi has not been changed.

The National Savings Certificate will now offer an interest rate of 7 per cent from January 1, compared to 6.8 per cent at present.

Similarly, the senior citizen savings scheme will give 8 per cent interest against 7.6 per cent currently. The monthly income scheme too will yield 7.1 per cent interest, up from 6.7 per cent.

For term deposits, the 1 year term deposit will fetch 6.6 per cent interest against 5.5 per cent currently, while 2 year term deposit will give garner 6.8 per cent interest against 5.7 per cent currently. The 3 year term deposit is being offered 6.9 per cent interest against 5.8 per cent currently, while 5 year term deposit will give 7 per cent interest against 6.9 per cent.