Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.


Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence


Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

PPF, Other Small Saving Schemes to Fetch Lower Interest From January

The move is expected to see banks lowering their deposit rates in line with the small savings rate offered by the government.


Updated:December 28, 2017, 12:00 AM IST
PPF, Other Small Saving Schemes to Fetch Lower Interest From January
File photo of Union Finance Minister Arun Jaitley. (PTI)

New Delhi: The government on Wednesday slashed interest rates on small savings schemes, including NSC and PPF, by 0.2 percentage point for the January-March period from the rates applicable in the previous quarter, a move that will prompt banks to lower deposit rates.

At the same time, investments in the five-year Senior Citizens Savings Scheme has been retained at 8.3 per cent. The interest rate on the senior citizens scheme is paid quarterly.

A finance ministry notification said rates have been reduced across the board for schemes such as National Savings Certificate (NSC), Sukanya Samriddhi Account, Kisan Vikas Patra (KVP) and Public Provident Fund (PPF). However, interest on savings deposits has been retained at 4 per cent annually.

Since April last year, interest rates on all small savings schemes have been recalibrated on a quarterly basis.

As per the notification, PPF and NSC will fetch a lower annual rate of 7.6 per cent while KVP will yield 7.3 per cent and mature in 11 months.

The girl child savings scheme Sukanya Samriddhi Account will offer 8.1 per cent from existing 8.3 per cent annually.

Term deposits of 1-5 years will fetch a lower interest rate of 6.6-7.4 per cent, to be paid quarterly, while the five-year recurring deposit is pegged at 6.9 per cent.

"On the basis of the decision of the government, interest rates for small savings schemes are to be notified on a quarterly basis," the ministry said, while notifying the rates for fourth quarter of financial year 2017-18.

While announcing the quarterly setting of interest rates, the ministry had said that rates of small savings schemes would be linked to government bond yields. The move is expected to see banks lowering their deposit rates in line with the small savings rate offered by the government.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

| Edited by: Aakarshuk Sarna
Read full article
Next Story
Next Story

Also Watch

Most Active
Company Price Change %Gain
Indiabulls Hsg 181.60 4.94
Eicher Motors 20,024.30 4.18
Bajaj Finance 4,064.00 1.19
Reliance 1,380.05 0.56
HDFC 2,072.20 1.15
Company Price Change %Gain
Indiabulls Hsg 181.95 5.23
Bajaj Consumer 259.75 10.70
Yes Bank 41.35 0.49
IRCTC 709.00 1.20
Bajaj Finance 4,064.30 1.13
Top Gainers
Company Price Change %Gain
Eicher Motors 20,024.30 4.18
Britannia NCD 3,239.25 1.97
Coal India 197.60 1.57
Zee Entertain 263.85 1.62
IndusInd Bank 1,291.00 1.29
Company Price Change %Gain
Coal India 197.35 1.39
IndusInd Bank 1,290.20 1.24
Axis Bank 701.55 1.16
HDFC 2,072.00 1.07
Bajaj Finance 4,064.30 1.13
Top Losers
Company Price Change %Gain
Vedanta 146.45 -2.30
Hindalco 184.20 -2.00
JSW Steel 216.30 -1.82
TCS 2,011.15 -1.72
Grasim 722.00 -1.21
Company Price Change %Gain
Vedanta 146.35 -2.24
Tata Steel 343.50 -1.14
HCL Tech 1,089.75 -1.01
ONGC 140.30 -0.92
Kotak Mahindra 1,594.55 -0.72

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results