Government cuts interest rate on small savings schemes by 0.1%
Interest rates on small savings schemes such as National Savings Scheme, Kisan Vikas Patra and Public Provident Fund have been cut by 10 basis points, according to a finance ministry notification.
Interest rates on small savings schemes is reset before each quarter and depends on government bond yields in the previous quarter.
The government has reduced interest rate on PPF to 7.9% from 8% now.
Interest on five- year NSC has also been cut to 7.9%.
Interest rate on Sukanya Samridhi Yojana, the scheme for the girl child, has been brought down to 8.4% from 8.5%.
Interest rate on Kisan Vikas Patra has come down to 7.6% from 7.7%. It will now mature in 113 months instead of 112 months. The interest rates on five-year time deposits, five-year recurring deposits and the five-year Senior Citizens Savings Scheme have been lowered by 10 basis points. Senior citizens scheme will now attract an interest rate of 8.6%. Five-year time deposit and five year recurring deposit will attract interest rates of 7.7% and 7.2% respectively. Postal savings rate remains unchanged at 4%.
