Government Keeps Interest Rates Unchanged on Small Savings Schemes

Ahead of monetary policy review, the government on 29 September 2017 kept unchanged the interest rates on small savings schemes like PPF, Kisan Vikas Patra and Sukanya Samriddhi for October-December quarter. 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.

Since April last year, interest rates of all small saving schemes have been recalibrated on a quarterly basis. The Reserve Bank of India is scheduled to undertake monetary policy review on October 4. Investments in the public provident fund (PPF) scheme will fetch annual rate of 7.8 per cent while Kisan Vikas Patra (KVP) investments will yield 7.5 per cent and mature in 115 months.

The one for girl child savings, Sukanya Samriddhi Account Scheme will offer 8.3 per cent annually. Similarly, the investment on 5-year Senior Citizens Savings Scheme will yield 8.3 per cent. The interest rate on the senior citizens scheme is paid quarterly. The move is expected to prompt banks to lower the deposit rate in line with the small savings rate as offered by the government.

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