The Interest Rates for PPF, NSC & Kisan Vikas Patra have been reduced by 20 basis points. The government on Wednesday i.e 27th December 2017, Slashed interest rates on small savings schemes, including NSC and PPF, by 0.2 percent for the January-March period from the rates applicable in the previous quarter as compared to the rates in the previous October-December quarter of the financial year 2017-18.
The small saving schemes interest rates, which are linked to the benchmark 10-year government bond yields, are now reset every quarter and the government have once again lowered the rates.
Interest Rates for PPF (Public Provident Fund) has been lowered to 7.6% from 7.8% per annum.
The interest rate on Savings deposit has remained at 4 percent annually.
Similarly, KVP (Kisan Vikas Patra) rates has been re-revised to 7.3% from 7.5% per annum.
However, the interest rates on savings deposit and 5 – Year Senior Citizen Savings Scheme have been left unchanged. The interest rate on the senior citizens’ scheme is paid quarterly.
All the rates whether changed or unchanged are shown in the below given table.
|Instrument||Old Rate of interest||New Rate of interest||Compounding frequency|
|1 Year Time Deposit||6.8||6.6||Quarterly|
|2 Year Time Deposit||6.9||6.7||Quarterly|
|3 Year Time Deposit||7.1||6.9||Quarterly|
|5 Year Time Deposit||7.6||7.4||Quarterly|
|5 Year Recurring Deposit||7.1||6.9||Quarterly|
|5 Year Senior Citizen Savings Scheme||8.3||8.3||Quarterly end Paid|
|5 Year Monthly Income Account||7.5||7.3||Annually|
|5 Year National Savings Certificate||7.8||7.6||Annually|
|Public Provident Fund Scheme||7.8||7.6||Annually|
|Kisan Vikas Patra||7.5 (will mature in 115 months)||7.3 (will mature in 118 months)||Annually|
|Sukanya Samriddhi Account Scheme||8.3||8.1||Annually|