The government has cut interest rates on small savings schemes such as NSC, Public Provident Fund Scheme and Kisan Vikas Patra by 20 bps for the January-March period.
However, the interest rate in the five-year Senior Citizens Savings Scheme has been retained at 8.3%. The interest on the scheme is paid quarterly. The interest on savings deposits has been retained at 4% annually.
“On the basis of the decision of the government, interest rates for small savings schemes are to be notified on a quarterly basis,” the Ministry of Finance said in a notification.
Term deposits of 1-5 years will fetch a lower interest rate of 6.6-7.4%, to be paid quarterly, while the five-year recurring deposit will give a return of 6.9%, the notification stated.
PPF and NSC will give an annual rate of 7.6% while KVP will fetch 7.3% and mature in 118 months. Sukanya Samriddhi Account will now offer an annual rate of 8.1% against the existing 8.3% annually.
