You are using an older browser version. Please use a supported version for the best MSN experience.

Small savings interest rate unchanged for for October-December

LiveMint logoLiveMint 29-09-2017 PTI

New Delhi: Ahead of monetary policy review, the government on Friday kept unchanged the interest rates on small savings schemes like PPF (public provident fund), Kisan Vikas Patra and Sukanya Samriddhi for October-December quarter.

“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.

Since April last year, interest rates of all small saving schemes have been recalibrated on a quarterly basis. The Reserve Bank of India is scheduled to undertake monetary policy review on October 4.

Investments in the PPF scheme will fetch annual rate of 7.8% while Kisan Vikas Patra (KVP) investments will yield 7.5% and mature in 115 months. The one for girl child savings, Sukanya Samriddhi Account Scheme, will offer 8.3% annually.

Similarly, the investment on 5-year Senior Citizens Savings Scheme will yield 8.3%. 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 1 April, 2016, the ministry said while notifying the rates for third quarter of fiscal 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.

More From LiveMint

image beaconimage beaconimage beacon