Govt lowers interest rate by 0.1% on small saving schemes for July-Sep quarter

Government has lowered interest rate on small saving schemes by 0.1 per cent for the July- September quarter. The move will prompt banks to lower deposit rates. The rates of small saving schemes like PPF, Kisan Vikas Patra and Sukanya Samriddhi have been lowered across the board compared to the April-June quarter. 

Since April last year, interest rates of all small saving schemes have been recalibrated on a quarterly basis. A finance



ministry notification said, investments in the public provident fund (PPF) scheme will fetch lower annual rate of 7.8 per cent. Kisan Vikas Patra (KVP) investments will yield 7.5 per cent and mature in 115 months.

The one for girl child savings, Sukanya Samriddhi Account Scheme, will offer 8.3 per cent annually, from 8.4 per cent at present. The investment on 5-year Senior Citizens Savings Scheme will yield 8.3 per cent.