Government Cuts Rates On PPF, Other Small Savings Schemes By 0.1%
The Public Provident Fund Scheme will now fetch a lower interest.
Interest rates on small savings schemes have been cut by 10 basis points for the October-December period.
The Public Provident Fund Scheme, Kisan Vikas Patra, and Sukanya Samriddhi Account Scheme will fetch lower returns post this revision.
Public Provident Fund Scheme will fetch an interest rate of 8 percent in the third quarter of the current fiscal, according to a finance ministry statement. Kisan Vikas Patra Scheme will carry an interest of 7.7 percent and will now mature in 112 months instead of 110 months. The interest rate on the Sukanya Samriddhi Account scheme will now come down to 8.5 percent.
Interest rates for small savings schemes are notified on a quarterly basis and linked to government securities of equivalent maturities.
Interest rates on one-year, two-year, three-year, five-year deposits have also been reduced by 10 basis points, among others.
Interest rates on five-year recurring deposits, five-year Senior Citizens Savings Scheme, and Five-year National Savings Certificate has been cut to 7.3 percent, 8.5 percent, and 8 percent, respectively.
The government has, however, kept savings deposit rates unchanged at 4 percent.