Govt cuts interest rate on small savings schemes
Posted on: 31/Mar/2017 5:09:03 PM
The government has taken a move that will induce banks to cut their deposit rates. The interest rates on small savings schemes such as Kisan Vikas Patra, Sukanya Samriddhi and PPF are reduced by 0.1 percent for the April-June quarter.
In this quarter, the interest is lowered by 0.1 percent when set against the previous quarter January to March. The interest rate of savings deposit is however the same.
Since April 2016, for every quarter of the year, the interest rates are being changed continuously. According to the finance ministry notification, the annual interest rate of public provident fund scheme will be 7.9 percent which is the same as the 5-year National Savings Certificate.
For these 2 schemes, the existing rate is 8 percent. The KVP investment is for 112 months and will yield 7.6 percent interest. Sukanya Samridhi Account Scheme, the savings scheme for girl children will give an annual offer of 8.4 percent.
