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Interest Rates On PPF, Other Savings Schemes Cut by Modi Govt

New Delhi: Interest rates on small savings schemes have been reduced marginally by 0.1 per cent for the October-December quarter of 2016-17, leading to lower returns on schemes such as Public Provident Fund (PPF), Kisan Vikas Patra and Sukanya Samriddhi Account.

The interest rate on savings deposit has been kept unchanged at four per cent.

The popular Public Provident Fund will fetch an interest rate of 8 per cent in the third quarter of the current fiscal year as against 8.1 per cent in the previous three-month period.

The interest rate on Kisan Vikas Patra has been brought down to 7.7 per cent from 7.8 per cent. As a result, the Kisan Vikas Patra or KVP will now mature in 112 months instead of 110 months.

Interest rates for small savings schemes are notified on a quarterly basis. Accordingly, the Finance Ministry on Thursday notified the rates of interest on various schemes for the October-December period of 2016-17.

The rate of interest for the third quarter on Five-Year Senior Citizens Savings Scheme and Five-Year National Savings Certificate has been reduced to 8.5 per cent and 8 per cent, respectively.

The Sukanya Samriddhi Account Scheme, for the girl child, will now fetch an interest rate of 8.5 per cent. The interest rate was at 8.6 per cent in the July-September quarter.

Interest rates on one-, two-, three-, four- and five-year time deposits too have been reduced by 0.1 per cent.

Depositors will get an interest rate of 7.3 on a five-year recurring deposit during the quarter beginning October 1, as against the rate of 7.4 per cent they were getting in the second quarter.

The interest rate on savings deposit has, however, been kept unchanged at four per cent.

With PTI

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