31 March 2017

Interest rates on small savings schemes cut by 0.1%

Interest rates on small savings schemes cut by 0.1%

As per the government announcement the returns on small savings schemes, including Public Provident Fund (PPF), National Savings Certificate (NSC) and Kisan Vikas Patra, will be lowered by 0.1 percent for the April-June quarter.

Interest rates on all nine small savings schemes will be lower by 0.1%. Interest rates are reviewed quarterly. Until now, PPF fetched an annual interest rate of 8%, the same as the five-year NSC. Returns on Kisan Vikas Patra used to be 7.7%.

According to finance ministry notification, investments in the public provident fund (PPF) scheme will fetch lower annual rate of 7.9%, the same as a five-year National Savings Certificate. The existing rate for these two schemes is 8%. Kisan Vikas Patra (KVP) investments will yield 7.6% and mature in 112 months.

For the April-June quarter, the Sukanya Samriddhi Account Scheme will continue to earn the highest return. However, this has also been cut by 0.1 per cent to 8.4 per cent annually, from 8.5 per cent at present.

Takeaways from above News-
  • Interest rates on small savings schemes cut by 0.1% for the April-June quarter
  • Interest rates are reviewed quarterly
  • Mr. Arun Jaitley is the Finance Minister of India

If you have any other takeaways, do share with us in the comment section

Source- The Hindu

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