The government has cut interest rates on various small savings schemes. The government has cut interest rates on small savings schemes like NSC and PPF by 0.2% in the January-March quarter. Influenced by this move of the government can reduce bank deposit rates. The five-year Senior Citizens Savings Scheme has been kept at 8.3 percent.
The interest rates of National Savings Certificate (NSC), Sukanya Prosperity Account, Kisan Vikas Patra (KVP) and Public Provident Fund (PPF) have been reduced, said the Finance Ministry in a notification. The Ministry said that the annual rate of interest rate on Savings Deposits has been kept at 4%.
Saving Deposit rate
|Instrument||Rate of Interest from 1.10.2017 to 31.12.2017||Rate of Interest from 1.01.2018 to 31.04.2018|
|1- year deposit||6.8%||6.6%|
|2- year deposit||6.9%||6.7%|
|3- year deposit||7.1%||6.9%|
|5- year deposit||7.6%||7.4%|
|5- year recurring deposit||7.1%||6.9%|
|5- year senior citizen saving scheme||8.3%||8.3%|
|5- year monthly income account||7.5%||7.3%|
|5- year NSC||7.8%||7.6%|
|Sukanya Samriddhi Account scheme||8.3%||8.1%|
The interest rates of small savings schemes are being changed on a quarterly basis since April last year. According to the notification, the annual rate on PPF and NSC will be below 7.6%, while the rate for KVP will be 7.3% and it will be matched in 11 months. Interest rate in Sukanya Prosperity Account will be 8.3 percent on the basis of earlier 8.3%.
Note – Please note that the above article is for education purpose only. This is based on our interpretation of laws which may differ person to person. Readers are expected to verify the facts and laws