Govt hikes interest rate on NSC, senior citizen savings scheme from Jan 1

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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.

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.