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.
