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The government has lowered the interest rates on small savings schemes like PPF, Kisan Vikas Patra and Sukanya
Small saving schemes such as Public Provident Fund and Kisan Vikas Patra will earn lesser return by 0.1 per cent in the new financial year. The Finance Ministry has notified the interest rate for small saving schemes for the April to June quarter of 2017-18.
“On the basis of the decision of the government, interest rates for small savings schemes are to be notified on a quarterly basis,” the Ministry said on Friday while notifying the rates for the quarter starting April 1 and ending on June 30.
The return on the PPF and the Five-Year National Savings Certificate has been further lowered to 7.9 per cent from 8 per cent for the first quarter of the fiscal. The interest rate on the KVP has also been cut to 7.6 per cent from the earlier 7.7 per cent and it will now mature in 113 months as against 112 months previously.
For the April-June quarter, the Sukanya Samriddhi Account Scheme will continue to earn the highest return. However, this has also been cut by 0.1 per cent to 8.4 per cent annually, from 8.5 per cent at present.
The interest rate on the five-year Senior Citizens Savings Scheme has been retained at 8.4 per cent as also for savings deposit at 4 per cent.
Term deposits of one year to five-year maturity will fetch a lower return ranging between 6.9 per cent and 7.7 per cent while the five-year recurring deposit has been pegged lower at 7.2 per cent.
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