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NEW DELHI: The government has left interest rates on most small savings schemes unchanged, barring five-year recurring deposits, which will fetch 6.5% during the July-September quarter 30 basis points higher than the current level.
The only other change is in the case of post-office deposits of one and two years, where rates have been raised by 10 basis points (100 basis points is equal to one percentage point). Rates are revised every quarter.
The only other change is in the case of post-office deposits of one and two years, where rates have been raised by 10 basis points (100 basis points is equal to one percentage point). Rates are revised every quarter.
Rates not moved in line with formula for some quarters
The government has, however, left interest rates on popular schemes such as Public Provident Fund, Senior Citizens Savings Schemes, Kisan Vikas Patras and Sukanya Samriddhi Scheme unchanged for the July-Sept quarter.
The government revises interest rates every quarter to link it to the market rates. For the last few quarters, however, rates have not fully moved in line with the prescribed formula.
By keeping rates steady for most schemes, the government may be signalling that they have peaked.
Among the schemes, Sukanya Samriddhi will fetch the highest return of 8%, followed by NSC (7.7%) and PPF earning 7.1%.
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