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Interest Rates On PPF, Other Savings Schemes Fall

Small savings schemes include Post Office deposits, PPF and Sukanya Samriddhi.
Small savings schemes include Post Office deposits, PPF and Sukanya Samriddhi.

The government on Thursday cut interest rates on small savings schemes by 0.1 per cent for the October-December quarter.

Small savings schemes include Post Office deposits, public provident fund (PPF) and Sukanya Samriddhi.

The interest rate on National Savings Certificate and Public Provident Fund has been revised to 8 per cent from 8.1 per cent, effective October 1, 2016.

Also, the interest rate on Kisan Vikas Patra has been revised to 7.7 per cent from 7.8 per cent while that on Sukanya Samriddhi Account scheme revised to 8.5 per cent from 8.6 per cent.

According to the new small savings scheme rules which came into effect from April 1, interest rates are revised every quarter based on the previous three-month yields on benchmark government securities or bonds with a small mark-up.

The yields on 10-year government bonds have fallen to multi-year lows amid strong inflow from foreign investors into Indian debt markets as well as speculation that the Reserve Bank of India will cut interest rates in its upcoming monetary policy review on October 4.