Banking News

Interest rates on Small Savings Scheme from April 1, 2017

Interest rates on Small Savings Scheme from April 1, 2017


The Finance Ministry, Government of India notified 10 basis point cut in interest rates of small savings schemes. The interest rate on the five-year Senior Citizens Savings Scheme has been retained at 8.4 per cent as also for savings deposit at 4 per cent. Accordingly, the interest rates on various small savings scheme for the first quarter of the financial year 2017-18 starting from April 1, 2017, to June 30, 2017, will be as under.

Scheme Rate of Interest

from April 1, 2017, to

June 30,2017

Interest rate for the previous quarter Interest compounded

On

Savings account 4% 4% Annual  rest
1 year time deposit 6.90% 7.00% Quarterly rest
2 year time deposit 7.00% 7.10% Quarterly rest
3-year time deposit 7.20% 7.30% Quarterly rest
5-year time deposit 7.70% 7.80% Quarterly rest
5-year Recurring Deposit 7.20% 7.30% Quarterly rest
5-year Senior Citizen Saving Scheme 8.40% 8.40% Interest paid quarterly, Quarterly rest
5-year Monthly Income Account Scheme 7.60% 7.70% Interest paid monthly,
5- year NSC 7.90 % 8.00% Annual rest
PPF (Public Provident Fund) 7.90% 8.00% Annual rest
KVP (Kissan Vikas Patra) 7.60 %(matures 113 months) 7.70% (matures 112 months) Annual rest
Sukanya Samriddhi Account Scheme 8.40% 8.50% Annual rest

 

The government had announced in February 2016 that small savings rates will be set quarterly instead of the earlier system of announcing for every year so as to align them with the market rate of government securities.

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