The finance ministry has retained the interest rate on small savings schemes for the September quarter.
The scheme will continue to fetch small investors better rates than other fixed income avenues such as bank fixed deposits (FDs).
For example, the five-year fixed deposit under Post Office Savings Scheme offers a 6.7 per cent interest rate. Top banks in the country offer 5.4-5.5 per cent interest rates on a fixed deposit of the same tenure.
Many were keenly waiting for the announcement after the events that occurred last quarter. Towards March-end, the government had announced a cut in small savings scheme