About:
- The Finance Ministry said that interest rates for small savings schemes will be reduced by 10 basis points for July-September quarter of the ongoing financial year.
- New rates will be applicable till September 30.
- The move is aimed at matching the softening of interest rates in the banking sector since the RBI cut its benchmark policy rate thrice during the year
Interest rates on small savings schemes:
- The rate for the Kisan Vikas Patra scheme has been modified to 7.6%, which will mature in 113 months, compared with the earlier 7.7% which matured in 112 months.
- The girl child savings scheme Sukanya Samriddhi Account will fetch a lower return of 8.4% as compared with 8.5%.
- The rate for the five-year Senior Citizen Savings Scheme (SCSS) has been reduced to 8.6% from 8.7%.
- The five-year National Savings Certificate (NSC) rate has also been reduced to 7.9% from 8%.
- Deposits in the Public Provident Fund (PPF) will fetch 7.9% compounded annually, down from the 8% earlier.
- While the interest rate on savings deposits has been kept at 4% compounded annually, the rate for one, two, and three-year time deposits has been reduced to 6.9% from 7%, compounded quarterly.
