NDA Govt cuts interest rates on small-saving schemes
In a move that will hit the common man, the government on Friday March 18,2016 slashed interest rates payable on small savings including PPF and Kisan Vikas Patra (KVP) in a bid to align them closer to market rates.
As a part of its February 16,2016 decision to revise interest rates on small savings every quarter, the interest rate on Public Provident Fund (PPF) scheme will be cut to 8.1 % for the period April 1 to June 30,2016 from 8.7%, at present.
Similarly, the interest rate on KVP will be cut to 7.8 % from 8.7 %, according to a Finance Ministry order.
While the interest rate on Post Office savings has been retained at 4 %, the same for term deposits of one to five years has been cut.
The popular 5-year National Savings Certificates will earn an interest rate of 8.1 % from April 1 as against 8.5%, at present.
A 5-year Monthly Income Account will fetch 7.8 % as opposed to 8.4 % now. Girl-child saving scheme, Sukanya Samriddhi Account will see interest rate of 8.6 % as against 9.2 %
Senior citizen savings scheme of five-year would earn 8.6 % interest compared with 9.3 %
"On the basis of the decisions of the government, interest rates for small savings schemes are to be notified on quarterly basis," the order said announcing the rates for the first quarter of fiscal 2016-17.
Post Office term deposits of one, two and three years command an interest rate of 8.4 % but from April 1,2016 -
In a move that will hit the common man, the government on Friday March 18,2016 slashed interest rates payable on small savings including PPF and Kisan Vikas Patra (KVP) in a bid to align them closer to market rates.
As a part of its February 16,2016 decision to revise interest rates on small savings every quarter, the interest rate on Public Provident Fund (PPF) scheme will be cut to 8.1 % for the period April 1 to June 30,2016 from 8.7%, at present.
Similarly, the interest rate on KVP will be cut to 7.8 % from 8.7 %, according to a Finance Ministry order.
While the interest rate on Post Office savings has been retained at 4 %, the same for term deposits of one to five years has been cut.
The popular 5-year National Savings Certificates will earn an interest rate of 8.1 % from April 1 as against 8.5%, at present.
A 5-year Monthly Income Account will fetch 7.8 % as opposed to 8.4 % now. Girl-child saving scheme, Sukanya Samriddhi Account will see interest rate of 8.6 % as against 9.2 %
Senior citizen savings scheme of five-year would earn 8.6 % interest compared with 9.3 %
"On the basis of the decisions of the government, interest rates for small savings schemes are to be notified on quarterly basis," the order said announcing the rates for the first quarter of fiscal 2016-17.
Post Office term deposits of one, two and three years command an interest rate of 8.4 % but from April 1,2016 -
- 1-year time deposit will get 7.1 %
- 2-year time deposit will earn 7.2 % and
- 3-Year time deposit will attract interest of 7.4 %
- 5-year time deposit will fetch 7.9 % interest in the first quarter as against 8.5 %
- 5-year recurring deposit has been slashed to 7.4 % from 8.4 %
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