July 1, 2017 5:27:33 pm
The government cut interest rate by 0.1 per cent, 10 basis points, on small saving schemes like the Public Provident Fund (PPF), National Savings Certificate (NSC), Kisan Vikas Patra, Sukanya Samriddhi Account Scheme and Senior Citizen Savings Scheme on Friday with the aim that would require banks to lower deposit rates.
For July to September 2017, the interest rates have been lowered by 0.1 per cent from the last quarterly term, April to June. Interest on savings deposits, though, has been retained at 4 per cent annually.
Public Provident Fund and National Savings Certificate: According to a notification issued by the finance ministry, investments in the PPF will yield lower annual rate of 7.8 per cent as against 7.9 per cent when compared to the last quarterly term. Similarly, the rate of the NSC has lowered down to 7.8 per cent.
Kisan Vikas Patra: The Kisan Vikas Patra would drop down by 0.1 per cent and will now fetch an interest rate of 7.5 per cent. Another change made to the scheme is the increase in the duration of maturity which will now be 115 months as against 113 months.
Sukanya Samriddhi Account Scheme and Senior Savings Scheme: Remaining two schemes shall come down to a 8.3 per cent as against 8.4 per cent in the April to June term.
Interest rates are revised every three months and in the last revision the interest rates for all schemes had too reduced by 10 basis points. Since April last year, interest rates of all small saving schemes have been recalibrated on a quarterly basis.
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