1. Small saving schemes: PPF, NSC rates cut to 7.8 per cent, KVPs to earn 7.5 per cent

Small saving schemes: PPF, NSC rates cut to 7.8 per cent, KVPs to earn 7.5 per cent

The revised PPF and NSCs are set at 7.8%, while KVPs will earn only 7.5%.

By: | New Delhi | Updated: June 30, 2017 6:15 PM
PPF, NSC, KVP, PPF rates, NSC rates, KVP rates, new ppf rates, new nsc rates, new kvp rates The revised PPF and NSCs are set at 7.8%, while KVPs will earn only 7.5%.

Centre on Friday cut interest rates on small saving schemes, including, NSCs, Public Provident Fund (PPF) and Kisan Vikas Patra by 10 basis points. The revised PPF and NSCs are set at 7.8%, while KVPs will earn only 7.5%. The new rates for Senior Citizen’s Savings Scheme (SCSS) and Sukanya Samriddhi Yojana have been revised to 8.3%. The small saving schemes interest rates, which are linked to the benchmark 10-year government bond yields, are revised every three months. The last revision in rates came in  the month of March, when the rates for all schemes had been reduced by 10 basis points.

Prior to the revision, PPF rates were set at  7.9 per cent, Kisan Vikas Patra (KVP) investments at 7.6 per cent, and the Sukanya Samriddhi Account Scheme at 8.4 per cent. Last time, the first rate cut had come in the month of March – a move hailed by experts as both politically bold as well as economically correct. “Business and industry should get the benefits of lower interest rates. The only way of ensuring that would be that small saving rates also fall in line with the overall trajectory of softening interest rates,” says Ashish Kapur, CEO, Invest Shoppe India Ltd.

“On the basis of the decision of the government, interest rates for small savings schemes are to be notified on a quarterly basis,” the ministry had said while issuing a notification for the rates for the fourth quarter of 2016-17 starting from April 1, 2017. The ministry, while announcing the quarterly setting of interest rates, had said the rates of small saving schemes would be linked to government bond yields. The move is expected to prompt banks to lower the deposit rate in line with the small savings rate as offered by the government.

  1. Gopal Das
    Jul 1, 2017 at 8:51 am
    What good news he gives us. In the name of unified tax structure Indirect tax rose from 15 to 18 , besides direct tax. Interest on deposits sliced again. What he is celebrating. No social security measures. First farmers are committing suicide, next lower middle class will commit suicide. There will be a celebration of death.
    Reply
    1. Sumer Jain
      Jun 30, 2017 at 6:29 pm
      Reduced interest rate is no guarantee for loan and industrial growth but has brought a large number of citizens who depend on interest income on mat.This does not bid well for our countery which only taxes its citzens but does not provide for social security to its senior citizens unlike USA and other countries.
      Reply
      1. I
        ITProfessional
        Jun 30, 2017 at 3:39 pm
        I think these are all good schemes
        Reply
        1. INDIAN PEOPLE
          Jun 30, 2017 at 3:19 pm
          raise voice bjp out from india and received by america
          Reply

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