The government slashed interest rates on small savings schemes, including National Savings Certificate (NSC) and Public Provident Fund (PPF), by 0.2 percentage point for the January-March period from the rates applicable in the previous quarter. This will prompt banks to lower deposit rates.
As per the finance ministry notification, rates have been reduced across the board for schemes such as National Savings Certificate (NSC), Sukanya Samriddhi Account, Kisan Vikas Patra (KVP) and Public Provident Fund (PPF). However, interest on savings deposits has been retained at 4 percent annually.
| S. No. | Instrument | Annual Rate of Interest (in %) |
|---|---|---|
| 1. | National Savings Certificate (NSC) | 7.6 |
| 2. | Sukanya Samriddhi Account | 8.1 |
| 3. | Kisan Vikas Patra (KVP) | 7.3 |
| 4. | Public Provident Fund (PPF) | 7.6 |
| 5. | Senior Citizens Savings Scheme | 8.3 |
| 6. | Savings Deposit | 4 |
| 7. | 5 Years Recurring Deposit | 6.9 |
Source- The Hindu