Government hikes interest rate on five-year recurring deposit to 6.7%
Economy Business
The Department of Economic Affairs (DEA) raised interest rate on five-year recurring deposit scheme to 6.7% for the December quarter from 6.5%, but retained the rates for all other small savings schemes. According to a circular from the Department of Economic Affairs, interest rate on savings deposits has been retained at 4%, on one-year term deposit at 6.9%, on two-year and three-year term deposit at 7%, and on the five-year term deposit at 7.5%. The rates were the same during the September ended quarter.Meanwhile, the senior citizens savings scheme will fetch an interest rate of 8.2% during the December quarter, same as the previous quarter.The monthly income account scheme will have an interest rate of 7.4 % while National Savings Certificate will have an interest rate of 7.7%, and the Public Provident Fund (PPF) scheme will have an interest rate of 7.1%.
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