Govt cuts small savings interest rates
Posted on: 28/Dec/2017 3:36:22 PM
The interest rates for the small saving schemes are being revised every quarter of the year (once in 3 months). Accordingly, the central finance ministry announced the interest rate ratios for the quarter January-March 2018.
As per this announcement, the interest rates for the small saving schemes and Public Provident Funds have been reduced by 0.2% and fixed at 7.6%.
The interest rates for Kisan Vikas Patras has also been reduced by 0.2%. The interest rates for the Selvamagal saving scheme, meant for the daughters, has also been reduced from 8.3% to 8.1%.
The interest rates for the 5-year fixed deposits has been reduced to 6.9%. However, the interest rates for the Senior Citizens’ 5-year fixed deposit continues at 8.3% and the savings account interest rate continues at 4%.
It is expected that based on the above downward revision of interest rates announced by the central government, the banks will follow suit and soon announce the reduction in interest rates for the deposits.
