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Interest Rates On PPF And Other Small Savings Schemes Cut

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In the quarterly revision, interest rates on small savings schemes backed by the central government, were cut amid falling interest rates across the financial system.

 

Excluding interest rates on savings accounts, interest rate on small savings schemes, including NSC (National Savings Cerificate) and PPF (Public Provident Fund) were lowered by 10 basis points for the July-September 2019 quarter.

Interest Rates On PPF And Other Small Savings Schemes Cut

In a notification, the Department of Economic Affairs under the Ministry of Finance, on Friday, informed of the following changes:

InstrumentInterest rate from 1/4/2019 to 30/6/2019Interest rate from 1/7/2019 to 30/9/2019Compounding frequency
Savings account4%4%Annually
1 year time deposit7%6.90%Quarterly
2 year time deposit7%6.90%Quarterly
3 year time deposit7%6.90%Quarterly
5 year time deposit7.80%7.70%Quarterly
5 year recurring deposit7.30%7.20%Quarterly
5 year senior citizen savings scheme8.70%8.60%Quarterly and paid
5 year monthly income account7.70%7.60%Monthly and paid
5 year National Savings Certificate (NSC)8%7.90%Annually
Public Provident Fund8%7.90%Annually
Kisan Vikas Patra7.70%7.60%Annually
Sukanya Samriddhi Scheme8.50%8.40%Annually

Interest rates for these schemes are reviewed and revised ahead of every quarter based on economic factors generally dictating interest rates in the banking sector. Earlier this month, the Reserve Bank of India cut key rate, totalling a 75 basis points cut in the repo rate since the start of this year. Banks and other financial institutions also cut their interest rates on fixed deposit as well as loans to reflect the changes.

Story first published: Friday, June 28, 2019, 22:43 [IST]
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