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|
|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.