Interest Rates For Small Saving Schemes Kept Unchanged

In a release the finance ministry said "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".

This has come largely as per expectations wherein analyst did not expected steep cuts as it is consumers had been facing high pressure due to hike in fuel price. The interest rate offering on these instruments is based on the yield on government bonds.

The rates on small saving schemes including Kisan Vikas Patra, PPF, NSC, Sukanya Samriddhi, Senior Citizen Saving scheme has now on being recalibrated on a quarterly basis from April last year.

This said for the quarter starting October 1, rates on PPF , Sukanya Samriddhi, 5-year Senior Citizens Savings Scheme will continue to fetch 7.8%, 8.3% and 8.3% respectively.
Kisan Vikas Patra with a maturity of 115 months will fetch 7.5%.

The steady rates on small saving schemes is likely to push bankers to revise rates on deposits downwards.

With inputs from PTI