Rate of interest unchanged for small savings

New Delhi : Amid country’s leading banks have slashed their lending rates, for the next quarters the government has kept interest rates on small savings schemes like Public Provident Fund (PPF) and Kisan Vikas Patra (KVP).

Since April last year, interest rates of all small saving schemes have been changing constantly on a quarterly basis. For the January-March quarter, these have been kept unchanged compared with the last quarter.

According to the ministry of finance notification,  investments in PPF scheme will continue to fetch an annual interest rate of 8 pc and KVP will continue to yield 7.7 pc and mature in 112 months.

The scheme for girl child savings, Sukanya Samriddhi Account Scheme, will continue to give out 8.5 pc annually, and 5-year Senior Citizens Savings Scheme 8.5 pc.

 A savings deposit will fetch 4 pc interest annually, while term deposits of 1-5 years will offer 7-7.8 pc that will be paid quarterly. The 5-year recurring deposit will continue to earn 7.3 pc.

The ministry also said the rates of small saving schemes will be linked to government bond yields.