Interest rates on small savings schemes such as PPF, KVP, Sukanya Samriddhi have been slashed by 0.1 percent for the October-December quarter of 2016-17.
Public Provident Fund, Kisan Vikas Patra, Sukanya Samriddhi Account, among others will generate lower returns for this quarter.
The most preferred savings scheme Public Provident Fund will fetch interest rate of 8 per cent as against 8.1 percent in the previous three-months period.
Kisan Vikas Patra dropped down to 7.7 percent from earlier 7.8 percent. Which means that KVP will now mature in 112 months instead of 110 months.
Interest rates for small savings schemes are notified on quarterly basis. Accordingly, the rates of interest on various savings of financial year 2016-17 starting on October 1, 2016- December 31, 2016.
The Sukanya Samriddhi Account Scheme, designed for girl child will now fetch 8.5 percent interest rate. It was 8.6 percent in previous quarter.
The interest rate on 5-Year Senior Citizens Savings Scheme and 5-Year National Savings Certificate is reduced to 8.5 percent and 8 percent, respectively.
Recurring deposit members will now get an interest rate of 7.3 on five-year recurring deposit as against 7.4 percent.