Just a day before the start of the new fiscal year, Central government slacked down the interest rates by 0.1 % on small savings schemes like Public Provident Fund (PPF), National Savings Certificate (NSC) Kisan Vikas Patra and many more.
The modification on returns will be effective from tomorrow onwards for the fourth quarter of 2016-17 quarter.
According to the finance ministry notification, the Public Provident Fund (PPF) and the Five-Year National Savings Certificate will yield an interest rate of 7.9 % instead of 8%.
While Kisan Vikas Patra (KVP) investments will fetch 7.6% and mature in 112 months.
For girls Sukanya Samriddhi Account Scheme, the new rate is 8.4% annually, as existing is 8.5%. Meanwhile, the interest rate on savings deposits has been retained at 4 percent annually.
The notification stated,”On the basis of the decision of the government, interest rates for small savings schemes are to be notified on a quarterly basis.”