Interest rate on small savings hiked after several yrs; PPF to fetch 8 pc now

After a gap of several years, the government has raised interest on small savings, including NSC and PPF, by up to 0.4 per cent for the October-December quarter, in line with rising deposit rates in the banks.

The decision is aimed at encouraging small savings and promote welfare of senior citizens and girl child. The rates are revised quarterly.

The move, Finance Minister Arun Jaitley said in a tweet is aimed at supporting small savers as the interest rates for small savings scheme have been increased by 0.3-0.4 per cent for the third quarter of this year