Interest rates on small savings deposits, including PPF, cut by 0.2% for next quarter
The move is expected to prompt banks to lower their deposit rates.
The Centre on Wednesday cut interest rates for small savings schemes, including the popular Public Provident Fund scheme and National Savings Certificates, by 0.2%.
The interest rates are revised every quarter, and the new rates are effective from January 1 to March 31. PPF as well as NSC investments will now have an annual interest rate of 7.6%, a notification by the Ministry of Finance said.
The interest rates for some other schemes were also revised – they were set at 7.3% for the Kisan Vikas Patra scheme, 8.3% for the senior citizens’ five-year savings scheme and 8.1% for the girl child savings Sukanya Samriddhi Account scheme. The government retained the interest on savings deposits at 4%, compounded annually.
The move is expected to prompt banks to lower their deposit rates.
Government cuts interest rate on various small savings schemes like PPF, Kisan Vikas Patra and Sukanya Samriddhi by 0.2% point.
— All India Radio News (@airnewsalerts) December 27, 2017
Investments in PPF scheme which used to fetch annual rate of 7.8%, will now attract 7.6% : @FinMinIndia
— All India Radio News (@airnewsalerts) December 27, 2017
Annual interest on Kisan Vikas Patra will be 7.3% as against current 7.5% :@FinMinIndia
— All India Radio News (@airnewsalerts) December 27, 2017