The government has increased the interest rate on the five-year recurring deposit scheme by 20 basis points to 6.7 per cent for the October-December quarter of the current financial year while keeping all other small savings rates unchanged.
The interest rate on the senior citizen scheme has remained at 8.2 per cent, which is the highest among all small savings schemes. Senior citizens who are residents of India can invest a lump sum in the scheme, individually or jointly, and get access to regular income along with tax benefits.
Similarly, the interest rate on savings deposit has been retained at 4 per cent, and on the one-year term deposit at 6.9 per cent.
The interest rate on both the two-year and three-year term deposits is 7 per cent, while on the five-year term deposit, the rate is 7.5 per cent.
The rates were the same during the September quarter.
As per the circular, the rest of the schemes remain unchanged. The senior citizens savings scheme will fetch 8.2 per cent interest rate, the monthly income account scheme will have an interest rate of 7.4 per cent and the national savings certificate will have an interest rate of 7.7 per cent.
The public provident fund (PPF) scheme will have an interest rate of 7.1 per cent.
The circular also stated that the interest rate on kisan Vikas Patra is 7.5 per cent with investments maturing in 115 months. Meanwhile, the interest rate on the popular girl child scheme Sukanya Samriddhi account is retained at 8 per cent.