From April 1, Kisan Vikas Patra Interest Rate Cut To 6.9%, Maturity Period Extended

Kisan Vikas Patra Interest Rate: From April 1, the government will pay interest at a rate of 6.9 per cent, instead of the existing 7.9 per cent.

From April 1, Kisan Vikas Patra Interest Rate Cut To 6.9%, Maturity Period Extended

The rate of return for Kisan Vikas Patra and other small savings schemes are reviewed every quarter

From April 1, investment in the Kisan Vikas Patra small savings scheme fetches a lower return of 6.9 per cent, compared to 7.9 per cent in the quarter ended March 31. Also, the Kisan Vikas Patra's maturity period stands reduced to 124 months from April 1, compared to the existing period of 113 months. This means that now, any investment in the certificate scheme - available at designated post office branches - doubles in size in a period of 124 months with effect from April 1.The government has lowered interest rates on most small savings schemes by 80-140 basis points (0.8-1.4 percentage point) for the first quarter of financial year 2020-21, according to an official statement. 

While the interest rate for Kisan Vikas Patra has been lowered to 6.9 per cent, here are the new rates for other small savings schemes:

InstrumentInterest Rate In January-MarchInterest Rate In April-JuneCompounding Frequency
Savings Deposit4%4%Annually
One-Year Time Deposit6.9%5.5%Quarterly
Two-Year Time Deposit6.9%5.5%Quarterly
Three-Year Time Deposit6.9%5.5%Quarterly
Five-Year Time Deposit7.7%6.7%Quarterly
Five-Year Recurring Deposit7.2%5.8%Quarterly
Senior Citizen Savings Scheme (SCSS)8.6%7.4%Quarterly and paid
Monthly Income Account7.6%6.6%Monthly and paid
National Savings Certificate7.9%6.8%Annually
Public Provident Fund7.9%7.1%Annually
Sukanya Samriddhi Account8.4%7.6%Annually
(Source: dea.gov.in)

Currently, the Ministry of Finance offers nine types of small saving schemes, including the 15-Year Public Provident Fund (PPF), the Senior Citizen Savings Scheme (SCSS) and the Sukanya Samriddhi scheme, and revises the interest rates applicable to them on a quarterly basis. 

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