Govt cuts interest rate on small savings schemes by 0.1 pc

The government has reduced interest rate on small savings schemes, including the National Savings Certificate and Public Provident Fund, by 0.1 per cent for the July-September quarter.

Barring interest on savings deposits, which has been retained at 4 per cent annually, rate on all other schemes has been slashed by 0.1 per cent.

Finance Ministry said in a statement that on the basis of the decision of the government, interest rates for small savings schemes are to be notified on a quarterly basis.

PPF and NSC will fetch an annual interest rate of 7.9 per cent from the existing rate of 8 per cent, while Kisan Vikas Patra will yield 7.6 per cent with a maturity of 113 months.

At present, the interest rate on KVP is 7.7 per cent and maturity is 112 months.

The girl child savings scheme Sukanya Samriddhi Account will fetch a lower return of 8.4 per cent from 8.5 per cent.

The interest rate for the five-year Senior Citizens Savings Scheme will now fetch a lower rate of interest at 8.6 per cent from 8.7 per cent. #casansaar (Source - NewOnAir)