New Delhi: The government has slashed interest rates on small savings schemes, including NSC and PPF, by 0.2 percentage for the January-March period, a move that will make banks lower deposit rates.
At the same time, investments in the five-year Senior Citizens Savings Scheme has been retained at 8.3 per cent. The interest rate on the senior citizens’ scheme is paid quarterly. A FM notification said rates have been reduced for schemes like NSC, Sukanya Samriddhi Account, Kisan Vikas Patra (KVP) and PPF. Interest on savings deposits has been retained at 4 per cent annually. As per the notification, PPF and NSC will have a lower annual rate of 7.6 per cent while KVP will yield 7.3 per cent and mature in 11 months.
The girl child savings scheme Sukanya Samriddhi Account will offer 8.1 per cent from existing 8.3 per cent annually. Term deposits of 1-5 years will fetch a lower interest rate of 6.6-7.4 per cent, to be paid quarterly, while the five-year recurring deposit is pegged at 6.9 per cent.
PNN
