Interest rate hiked to 6.7% on 5-year recurring deposit

New Delhi, September 29

The government on Friday raised the interest rate on five-year recurring deposit scheme to 6.7% from 6.5% for the December quarter and retained the rates for all other small savings schemes.

According to a Finance Ministry circular, the interest rate on savings deposit has been retained at 4% and on the one-year term deposit at 6.9%. The rates were the same during the September quarter.

No change on other schemes

• The interest rate on savings deposit has been retained at 4% and on the one-year term deposit at 6.9%
• The interest rate on both the two-year and three-year term deposits is 7% while on the five-year term deposit, the rate is 7.5%. Senior citizens savings scheme will fetch an interest rate of 8.2%
• On the monthly income account scheme, the interest rate is 7.4% while it is 7.7% on the National Savings Certificate and 7.1% on the Public Provident Fund scheme

The interest rate on both the two-year and three-year term deposits is 7% while on the five-year term deposit, the rate is 7.5%. Senior citizens savings scheme will fetch an interest rate of 8.2%.

On the monthly income account scheme, the interest rate is 7.4% while it is 7.7% on the National Savings Certificate and 7.1% on the Public Provident Fund (PPF) scheme.