Starting today, i.e. 1 July, select small savings schemes will fetch 10 basis points lower interest rates for the September quarter. The government has reduced these rates, which are reviewed every quarter, to bring them in line with the falling interest rate across the financial system after the Reserve Bank of India (RBI) cut its benchmark policy rate thrice during the year. Check out the revised interest rates offered by small-savings schemes such as Public Provident Fund (PPF), National Savings Certificate (NSC) and Kisan Vikas Patra (KVP) here:
Public Provident Fund: For the July-September quarter, 15-year PPF will fetch an annual interest rate of 7.9% (compounded annually) as compared to 8% earlier.
National Savings Certificate: NSC, a five-year small savings scheme, will fetch an interest rate of 7.9% compared with 8% earlier. The amount is compounded annually and paid on maturity.
Kisan Vikas Patra: KVP will yield 7.6% with maturity of 113 months. At present, interest rate on KVP is 7.7% and maturity is 112 months.
Post office term deposits: Post office term deposits of 1-3 years will fetch interest rate of 6.9%, to be paid quarterly, while the five-year quarterly rate is pegged at 7.7%. Recurring deposits will return 7.2% compared with 7.3% earlier.
Post Office Monthly Income Scheme: The five-year Post Office Monthly Income Scheme (MIS), where interest is paid out monthly, will fetch 7.6% as compared to 7.7% earlier.
Senior Citizens Savings Scheme: Interest rate for the five-year Senior Citizens Savings Scheme will now fetch a lower rate of interest at 8.6% compared with 8.7% earlier. The interest payout continues to be on a quarterly basis.
Sukanya Samriddhi Scheme: The girl child savings scheme Sukanya Samriddhi Account will now fetch 8.4% (compounded annually) compared with 8.5% earlier.
Savings deposit: The interest rate on savings deposit has, however, been retained at 4%.