Various small savings scheme's interest rate cut by 0.2 percentage points

The Government on Wednesday has lowered the interest rates on various small savings scheme by 0.2 percentage points for the January-March quarter as compared to the rates in the previous October-December quarter of the financial year 2017-18.

The interest rate on the one-year time deposit has been lowered to 6.6 percent as compared to 6.8 percent in the October-December quarter, whereas the 2-year time deposit will now fetch a lower interest rate of 6.7 percent from 6.9 percent in the previous quarter.

A finance ministry notification also showed that the interest rates have been slashed for the five year National Savings Certificate to 7.6 percent from 7.8 percent in the third quarter while the interest rate for Public Provident Fund Scheme has also been cut from 7.8 percent to 7.6 percent for January-March quarter.

The girl child savings scheme, Sukanya Samriddhi Account will offer 8.1 percent interest rate from the existing 8.3 percent compounded annually.

The Kisan Vikas Patra (KVP) investments will now yield 7.3 percent interest and mature in 115 months, the Ministry of Finance Notification said.

However, the interest rate for the five-year Senior Citizens Savings Scheme compounded quarterly and paid will remain unchanged at 8.3 percent.

Also, the interest rate on Savings deposit has remained at 4 percent annually.

In 2016, the government had decided to notify interest rates for small savings scheme on a quarterly basis.