The interest rates for small savings schemes for the quarter July 2016 to September 2016 kept unchanged, as per announcement of the Government (finance ministry). Accordingly, the interest rates for the investments in the small savings schemes remain the same as in the previous quarter. The details of the interest rate applicable on various small saving instruments are as under.
- PPF: 8.10%
- KVP: 7.80%
- Post office savings: 4%
- FiveyearNSC: 8.10%
- Five year Post office monthly income account: 7.80%
- Sukanya Samriddhi Account: 8.60%t
- Senior citizen savings scheme of five-year would earn 8.6 0%
- Post Office term deposits for one year: 7.10%, for two years: 7.20%, for 3 years: 7.40%, for Five years: 7.90%
- Post office Recurring Deposit: 7.40%
The Government announcement in February 2016, that the interest rate on small savings schemes will be notified on quarterly basis in future, instead of the earlier system of announcing for every year.
Now PPF account can be closed after 5 years for education purpose
The finance ministry on its notification dated Jun 21, 2016, announced that the PPF account can be prematurely closed for the purpose of higher education of the account holder (including minor accounts). The account holder has to produce documents and fee bills in confirmation of admission in a recognized institution.