NEW DELHI: The government has kept interest rates for small savings, such as senior citizens accounts, National Savings Certificates (NSC), Kisan Vikas Patra (Kavap) and Public Provident Fund ((PPF), unchanged for the second quarter of the current financial year starting July 1, a release issued by the finance ministry said on Friday.
The government has, however, made a minor 10 basis points (bps) increase in one and two-year term deposits, and a 30 bps increase in five-year recurring deposits, for the second quarter (Q2) of the financial year 2024, it said. One basis point is one-hundredth of a percentage point.
According to the statement, the interest rate on the one-year term deposit has been raised from 6.8% in Q1 (FY24) to 6.9% in Q2 (FY24).
Similarly, the interest rate for the two-year term deposit has been raised from 6.9% in Q1 to 7% in Q2. Rates for three and five-year term deposits remained unchanged at 7% and 7.5% respectively.
The interest rate on a five-year recurring deposit rate has been hiked by 30 bps to 6.5% in Q2 as compared to 6.2% in Q1, it said.
There has been no change in interest rates for Senior Citizens Savings Scheme (SCSS) which continues at 8.2%, Monthly Income Account Scheme (7.4%), NSC (7.7%), PPF (7.1%), KVP (7.5% will mature in 115 months) and Sukanya Samriddhi Account Scheme (8%).