Ppf kvp nsc interest rates has been reduced by government

Ministry of Finance Office Memorandum (F. No. 1/04/2016-NS.ll) dated 18 March 2016

The rates of interest on various small savings schemes for the first quarter of financial year 2016-17 as under:

Instrument

Rate of interest w.e.f. 01.04.2015 to 31.3.2016

Rate of interest w.e.f. 01.04.2016 to 30.6.2016

Savings Deposit

4.0

4.0

1 Year Time Deposit

8.4

7.1

2 Year Time Deposit

8.4

7.2

3 Year Time Deposit

8.4

7.4

5 Year Time Deposit

8.5

7.9

5 Year Recurring Deposit

8.4

7.4

5 Year Senior Citizens Savings

Scheme

9.3

8.6

5 year Monthly Income Account Scheme

8.4

7.8

5 Year National Savings Certificate

8.5

8.1

Public Provident Fund Scheme

8.7

8.1

Kisan Vikas Patra

8.7

7.8

(will mature in 110 months)

Sukanya Samriddhi Account Scheme

9.2

8.6

Ministry of Finance Office Memorandum (F. No. 1/04/2016-NS.ll) dated 18 March 2016

 

Replies (3)

Thank you Jitendra ji for the update. Kindly, enlighten us, as to what will this impact be on Investors / common man and Financial Institutions / Bank / Government Treasury etc? 

Small Savings are part of government borrowings. Now with reduce rate, governement will be benefited by paying lesser interest exepenses....

And common man who ordinarily put his hard money in small saving schemes will suffered.

This may be economically correct but politically hurt the ruling party is what experts / pundits opine.

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