Finance Ministry cuts interest rate on small saving schemes. Interest rate on small saving schemes such as Post Office Term Deposit, RD, 5 Year Monthly Income Account Scheme, NSC, PPF, Kissan Vikas Patra (KVP), Sukanya Samriddhi Account cut by 0.20 percent. While Interest rate on Saving account and 5 Year Senior Citizen Saving Scheme remain unchanged at 4 percent and 8.30 respectively.

Revised Interest Rate Chart on Small Saving Schemes :

Revised Interest rate on small saving schemes effective from 1 Jan 2018 are as follows –

Instrument/Scheme ROI (01/10/2017-31/12/2017) ROI (01/01/2018-31/03/2018) Compounding Frequency
Saving Deposit 4.0 4.0 Annually
1 year Time Deposit 6.8 6.6 Quarterly
2 Year Time Deposit 6.9 6.7 Quarterly
3 Year Time Deposit 7.1 6.9 Quarterly
5 Year Time Deposit 7.6 7.4 Quarterly
5 Year Recurring Deposit 7.1 6.9 Quarterly
5 Year Senior Citizen Saving Scheme 8.3 8.3 Quarterly and Paid
5 Year Monthly Income Account 7.5 7.3 Monthly and Paid
5 Year National Saving Certificate 7.8 7.6 Annually
Public Provident Fund Schemes 7.8 7.6 Annually
Kisan Vikas Patra 7.5(will mature in 115 months) 7.3(will mature in 118 months) Annually
Sukanya Samridhi Account Scheme 8.3 8.1 Annually

 

As earlier Government had announced in February 2016 to link the interest rates with government bond yields and set on quarterly basis instead of annually.

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