(The article is constantly updated on quarterly basis to reflect the latest rate of interest on various Small Savings Schemes.)
The Finance Ministry, Government of India notified 10 basis point cut in interest rates of small savings schemes. Accordingly, the interest rates on various small savings scheme for the third quarter of the financial year 2016-17 starting from October 1, 2016, to December 31, 2016 will be as under.
|Scheme||Rate of Interest from October 1, 2016 to December 31,2016||Interest rate for the previous quarter||Interest compounded
|Savings account||4%||4%||Annual rest|
|1 year time deposit||7.00%||7.10%||Quarterly rest|
|2 year time deposit||7.10%||7.20%||Quarterly rest|
|3 year time deposit||7.30%||7.40%||Quarterly rest|
|5 year time deposit||7.80%||7.90%||Quarterly rest|
|5 year Recurring Deposit||7.30%||7.40%||Quarterly rest|
|5 year Senior Citizen Saving Scheme||8.50%||8.60%||Interest paid quarterly, Quarterly rest|
|5 year Monthly Income Account Scheme||7.70%||7.80%||Interest paid monthly,|
|5 year NSC||8.00%||8.10%||Annual rest|
|PPF (Public Provident Fund)||8.00%||8.10%||Annual rest|
|KVP (Kissan Vikas Patra)||7.70 %(matures 112 months)||7.80% (matures 111 months)||Annual rest|
|Sukanya Samriddhi Account Scheme||8.50%||8.60%||Annual rest|
The Government announcement in February 2016, that the interest rate on small savings schemes will be notified on quarterly basis instead of the earlier system of announcing for every year.