Latest interest rate on PPF, Sukanya Samriddhi, other post office savings deposits after revision
For the July-September quarter, the interest rate on Public Provident Fund (PPF), Senior Citizen Savings Scheme, Sukanya Samriddhi, National Savings Certificate (NSC) and other small savings schemes have been revised lower. Except post office savings deposits, all other small savings products have seen a 10-basis-point rate cut, in the wake of falling interest rate across the financial system. The Reserve Bank of India has so far this year cut its benchmark policy rate thrice and many banks have also revised deposits, or FD, rates lower. The interest rate for small savings schemes are notified on a quarterly basis.
PPF will fetch 7.9% interest rate (compounded annually) for the July-September quarter, as compared to 8% for the April-June quarter. The interest rate of many small savings schemes had seen a sharp upward revision for the October-December quarter of last year and since then it was kept steady before seeing a cut.
Sukanya Samriddhi Account
Sukanya Samriddhi Account and Senior Citizen Savings Scheme will continue to fetch higher rates than other schemes. The girl child savings scheme Sukanya Samriddhi Account will fetch 8.4% (compounded annually), from 8.5% earlier.
Senior Citizens Savings Scheme
The Senior Citizen Savings Scheme is a popular small savings scheme meant for providing regular, risk-free income to senior citizens (age 60 or more). The interest payout is on a quarterly basis. The five-year Senior Citizens Savings Scheme will now fetch a lower rate of interest at 8.6%, from 8.7% earlier.
A five-year small savings scheme, NSC will fetch an interest rate of 7.9%, revised from 8% earlier. The amount is compounded annually and paid on maturity.
Kisan Vikas Patra (KVP) will fetch interest rate of 7.6% (compounded annually) with maturity of 113 months. Or, in other others, investments will double in 113 months as compared to 112 months earlier.
Post Office MIS scheme
The five-year Post Office Monthly Income Scheme (MIS), where interest is paid out monthly, will fetch 7.6% as compared to 7.7% earlier.
Post office Term deposits
Post office term deposits of 1-3 years will fetch interest rate of 6.9% while the five-year has been pegged at 7.7%. Post office 5-year recurring deposits will fetch 7.2% (quarterly compounding), from existing rate of 7.3%.
Source : Live Mint