Government hikes interest rates on small savings schemes by up to 0.3%, RD holders will get 6.5% interest against existing 6.2%

Government hikes interest rates

New Delhi: The Indian government has increased savings interest rates by up to 0.3%. This decision was taken on Friday, in which the interest rates on select small savings schemes were increased by up to 0.3% for the July-September quarter. In this, the maximum benefit has been for a five-year recurring deposit (RD). In this, you will get increased interest up to 0.3%. Like earlier you used to get 6.2 percent interest, now you will get increased from 0.3% to 6.5 percent interest.

As per the Finance Ministry’s notification, during the second quarter of the current financial year, RD holders will get 6.5 percent as against the existing 6.2 percent. With the revision, one-year fixed deposits in post offices will now fetch 0.1 percentage points higher at 6.9 percent, and for two-year tenure – 7 percent (over 6.9 percent). But interest rates have been retained at 7 percent and 7.5 percent.