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.