New Delhi: Interest rates on small savings schemes have been reduced marginally by 0.1 per cent for the October-December quarter of 2016-17, leading to lower returns on schemes such as Public Provident Fund (PPF), Kisan Vikas Patra and Sukanya Samriddhi Account.
The popular Public Provident Fund will fetch an interest rate of 8 per cent in the third quarter of the current fiscal year as against 8.1 per cent in the previous three-month period.
Interest rate on Kisan Vikas Patra has been brought down to 7.7 per cent from 7.8 per cent. As a result the KVP will now mature in 112 months instead of 110 months.
Interest rates for small savings schemes are notified on a quarterly basis. Accordingly, the Finance Ministry on Thursday notified the rates of interest on various schemes for the October-December period of 2016-17.
The rate of interest for the third quarter for 5-Year Senior Citizens Savings Scheme and 5-Year National Savings Certificate has been reduced to 8.5 per cent and 8 per cent, respectively.