From April 1, interest rate on PPF, small savings will be lowered by 0.1%
By FnF Desk | PUBLISHED: 31, Mar 2017, 17:30 pm IST | UPDATED: 01, Apr 2017, 7:45 am IST
The Centre today lowered interest rate by 0.1 per cent on Public Provident Fund (PPF) and small savings deposits. The new rate would be effective from April 1.
Meanwhile, For the January-March quarter even as banks have started lowering their deposit rates, government has kept interest rates on small savings schemes like PPF and Kisan Vikas Patra unchanged.
Since April last year, interest rates of all small saving schemes have been recalibrated on a quarterly basis. For the January-March quarter, these have been kept unchanged compared with the October-December quarter.
A finance ministry notification said investments in public provident fund (PPF) scheme will continue to fetch an annual interest rate of 8 per cent, the same as 5-year National Savings Certificate.
The one for girl child savings, Sukanya Samriddhi Account Scheme, will continue to give out 8.5 per cent annually while it will be the same as 8.5 per cent for the 5-year Senior Citizens Savings Scheme. Interest rate on senior citizens savings scheme is paid quarterly.
A savings deposit will fetch 4 per cent interest annually while term deposits of 1-5 years will offer 7-7.8 per cent that will be paid quarterly. The 5-year recurring deposit will continue to earn you 7.3 per cent rate.