The government raised the interest rates of the General Provident Fund (GPF) and a few other similar schemes to 8 per cent for the quarter ending December 2018. The interest rate for the previous quarter i.e. the quarter ending September 2018, the rate was 7.6 per cent. The 0.4 per cent increase will be applicable to GPF and other such schemes from October 1 to December 31, as per the notification issued by the Department of Economic Affairs.
The objective of the hikes was to ensure the interest rates were in line with the hiked interest rates of Public Provident Fund (PPF) and National Savings Certificate (NSC). The interest rates of PPF and NSC were hiked in September to align them with the increasing deposit rates in banks.
The increase in interest rates during the festive season has risen the spirits of those who invest in such saving schemes.
Here is a list of the latest interest rates of each of the savings schemes:
|Name of the savings scheme||Interest rate (per cent)|
|General Provident Fund (GPF)||8|
|Public Provident Fund (PPF)||8|
|National Savings Certificate (NSC)||8|
|Fixed Deposit (FD)||6.9 to 7.8 (Depends on tenure)|
|Senior Citizen Saving Scheme||8.7|
|Kisan Vikas Patra (KVP)||7.7|
|Monthly Income Scheme (MIS)||7.7|
|Sukanya Samriddhi Scheme||8.5|
Source: NDTV Profit