Government Hikes Interest On NSC, Post Office Term Deposits, Senior Citizen Savings Scheme

The government has hiked interest rate on National Savings Certificate, post office term deposits, senior citizens savings scheme with effect from January 1.

Outlook Business Desk

Updated on: 30 December 2022 5:53 pm

Interest rates for small savings schemes are notified on a quarterly basis.

The government on Friday hiked the interest rates on small deposits -- including post office term deposits, NSC and senior citizen savings scheme -- by up to 1.1 percentage points from January 1, in line with firming interest rates in the economy.

However, the interest rates on Public Provident Fund (PPF) and the girl child savings scheme Sukanya Samriddhi has not been changed.

National Savings Certificate (NSC) will yield a 7 per cent interest rate 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.

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Interest rates on Post office term deposit schemes of duration 1 to 5 years will rise by up to 1.1 percentage points.

The monthly income scheme too will yield 7.1 per cent interest, up from 6.7 per cent.