Interest on PPF & other Small Saving Schemes Decreased
Interest on PPF has been reduced by 0.10% w.e.f. 1st October 2016 from 8.10% to 8.00%. Besides PFF, rate of Interest on small saving schemes have been decreased by 10 basis points for the third quarter of FY 2016-17 i.e., 1st October 2016 to 31st December 2016.
In February 2016, Government of India Decided that rate of interest on small saving schemes shall be announced on quarterly basis instead of the previous system of annual revision.
The revised Rate of interest notified by Ministry of Finance, Government of India the third quarter are as under:
|Rate of Interest 01.07.16 to 30.09.16||Rate of Interest 01.10.16 to 31.12.16||Compounding Frequency|
|1 Year Time Deposit||7.10||7.00||Annualy|
|2 Year Time Deposit||7.20||7.10||Quarterly|
|3 Year Time Deposit||7.40||7.30||Quarterly|
|5 Year Time Deposit||7.90||7.80||Quarterly|
|5 Year Recurring Deposit||7.40||7.30||Quarterly|
|5 Year Senior Citizen Savings Scheme||8.60||8.50||Quarterly & Paid|
|5 Year Monthly Income Account Scheme||7.80||7.70||Monthly & Paid|
|5 Year National Savings Certificate||8.10||8.00||Annually|
|Public Provident Fund Scheme||8.10||8.00||Annually|
|Kisan Vikas Patra||7.80 (will mature in 110 months)||7.70 (will mature in 112 months)||Annually|
|Sukanya Samridhi Account Scheme||8.60||8.50||Annually|