New Delhi: The government will keep interest rates on most retail savings schemes, with the exception of five-year term deposits, unchanged at 6.5% for the July-September quarter, 30 basis points higher than the current level.
The only other change was an interest rate increase of 10 basis points (100 basis points equals 1 percentage point) for 1 and 2 year post office deposits. Prices are revised quarterly.
The only other change was an interest rate increase of 10 basis points (100 basis points equals 1 percentage point) for 1 and 2 year post office deposits. Prices are revised quarterly.
Rates didn’t move in line with formula in some quarters
However, the government kept interest rates on popular schemes such as: public provident fundElderly Savings Scheme, Chisan Vikas Patras, Sukanya Samridhi There is no change in the scheme for the July-September period.
The government resets interest rates quarterly to keep them in line with market interest rates. But in recent quarters, interest rates haven’t quite followed the formula.
By holding interest rates constant in most schemes, the government may signal that interest rates have peaked.
Among the schemes, Sukanya Samriddhi earned the highest return of 8%, followed by NSC (7.7%) and PPF Profit is 7.1%.
