Govt Keeps Small Savings Interest Rates Unchanged

New Delhi, Jul 3 (PTI) The government has kept the interest rates on small savings schemes, including NSC and PPF, unchanged for the July-September quarter.

The move is aimed at matching the hardening interest rates in the banking sector.

Interest rates for small savings schemes are notified on a quarterly basis.

"...the rates of interest on various small savings schemes for the second quarter of financial year 2018-19 starting July 1 and ending on September 30, 2018 shall remain unchanged from those notified for the fourth quarter of financial year 2017-18," the Finance Ministry said while notifying the rates for the second quarter.

Interest rate for the five-year Senior Citizens Savings Scheme has been retained at 8.3 per cent. The interest on the senior citizens' scheme is paid quarterly.

Interest on savings deposits has been retained at 4 per cent annually.

Public Provident Fund (PPF) and National Savings Certificate (NSC) will fetch annual interest rate of 7.6 per cent while Kisan Vikas Patra (KVP) will yield 7.3 per cent and mature in 11 months.

The girl child savings scheme Sukanya Samriddhi account will offer 8.1 per cent rate.

Term deposits of 1-5 years will fetch interest rate of 6.6-7.4 per cent, to be paid quarterly, while the five-year recurring deposit is pegged at 6.9 per cent.

While announcing the quarterly setting of interest rates in 2016, the Finance Ministry had said that rates of small savings schemes would be linked to government bond yields. The move is expected to see banks lowering their deposit rates in line with the small savings rate offered by the government.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)