ALSO READInterest rate on PPF, Kisan Vikas Patra, Sukanya Samriddhi lowered by 0.1% Small savings rates cut by 0.1% Small savings schemes still attractive despite cut in rates. Here's why It's time to link small savings and PF returns to market rates Govt slashes interest rates on small savings schemes like PPF, KVP
"The rates of interest on various small savings scheme for the third quarter of the financial year 2017-18 starting October 1 shall remain unchanged from those notified for the second quarter of 2017-18," the Finance Ministry said in a release.
The Reserve Bank of India is scheduled to undertake monetary policy review on October 4.
The one for girl child savings, Sukanya Samriddhi Account Scheme will offer 8.3 per cent annually. Similarly, the investment on 5-year Senior Citizens Savings Scheme will yield 8.3 per cent. The interest rate on the senior citizens scheme is paid quarterly.
On the basis of the decision of the government, interest rates for small savings schemes are to be notified on a quarterly basis since April 1, 2016, the ministry said while notifying the rates for third quarter of the financial year 2017- 18.
While announcing the quarterly setting of interest rates, the ministry had said the rates of small saving schemes would be linked to government bond yields.
The move is expected to prompt banks to lower the deposit rate in line with the small savings rate as offered by the government.
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