Interest rates cut on Small Savings schemes



The government trimmed interest rates on small savings schemes such as National Savings Certificate and Public Provident Fund by 20 basis points but spared senior citizens. The rate on the 5-year senior citizen savings scheme was retained at 8.3% for the three-month period starting from January 1, 2018 to April 31. Small savings rates are revised on a quarterly basis. The government had kept rates unchanged in the October-December quarter.

The finance ministry has also retained the savings deposit rate at 4%.

The popular PPF scheme will now fetch a rate of 7.6%, marginally lower than the rate of 7.8% in the October to December quarter. The five-year national savings certificate plan will fetch a rate of 7.6%. while the rate on Kisan Vikas Patra has been reduced to 7.3% from 7.5%. The rate on the Sukanya Samriddhi account scheme has been lowered to 8.1% from 8.3% while the 5-year recurring deposit will now have a rate of 6.9%, lower than the 7.1% in the previous quarter.

Term deposits of 1 to 5 years will fetch a lower interest rate of 6.6-7.4%, and will be paid quarterly. The rate on the five-year monthly income account has been reduced to 7.3% from 7.5%. The interest rate on the Employees Provident Fund is 8.65%.





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