Central Small Saving Scheme New Interest rates SSS/ KVP/ NSC/ SSY Revised Interest rates
Central Small Saving Scheme New Interest rates SSS/ KVP/ NSC/ SSY Revised Interest rates
Changes in Interest Rate Finance Minister Arun Jaitley announced that the government will review interest rates on small savings schemes. Small savings schemes, Kisan Vikas Patra, National Savings certificate, Sukanya Samriddhi Yojana. This advantage has been withdrawn, the Finance Ministry said. The interest rate for every quarter would be decided on the 15th of the preceding month.
The government had on February 16 announced moving small saving interest rates closer to market rates. On that day, rates on short-term post office deposits was cut by 0.25 per cent but long-term instruments such as MIS, PPF, senior citizen and girl child schemes were left untouched.
Savings Scheme
Rate
Tax Deduction on principal?
Interest Taxable?
Post Office Savings Account
4.0%
No
Yes
Post Office Recurring Deposit
5.8%
No
Yes
Post Office Monthly Income Scheme
6.6%
No
Yes
Post Office Time Deposit (1 year)
5.5%
No
Yes
Post Office Time Deposit (2 year)
5.5%
No
Yes
Post Office Time Deposit (3 year)
5.5%
No
Yes
Post Office Time Deposit (5 year)*
6.7%
Yes
Yes
Kisan Vikas Patra (KVP)
6.9%
No
Yes
Public Provident Fund (PPF)
7.1%
Yes
No
Sukanya Samriddhi Yojana
7.6%
Yes
No
National Savings Certificate
6.8%
Yes
No
ELSS (Equity Linked Savings Scheme)
Market Linked
Yes
Yes#
NPS (National Pension Scheme)
Market Linked
Yes
Yes**
Tax Saving FDs
6.75%*
Yes
Yes
Senior Citizens’ Saving Scheme (SCSS)
7.6%
Yes
Yes
Interest rate on Public Provident Fund ( PPF ) reduced to 8.1% from 8.7%
Interest rate on Kisan Vikas Patra ( KVP ) has been reduced to 7.8%
National Savings Certificates ( NSC ) will earn interest of 8.1%
Kisan Vikas Patra or KVP that currently provides for doubling of principal in 100 months (8 years and 4 months) will now be doubled in 110 months (9 years and 2 months) after the interest rate revision.
Post Office Term Deposits New Interest Rates :
Post Office term deposits of one, two and three years command an interest rate of 8.4 per cent.
1-year time deposit will get 7.1 per cent,
2-year time deposit will earn 7.2 per cent and
3-Year time deposit will attract interest of 7.4 per cent.
Five-year time deposit will fetch 7.9 per cent interest in the first quarter as against 8.5 per cent while the same on five-year recurring deposit has been slashed to 7.4 per cent from 8.4 per cent.
PPF interest rate cut to 8.1% :
1-year time deposit to 7.1% from 8.4%
2-year time deposit to 7.2% from 8.4%
3-year time deposit to 7.4% from 8.4%
5-year time deposit to 7.9% from 8.5%
5-year National Saving Certificates to 8.1%
5-year Senior Citizen Scheme to 8.6% from 9.3%
Girl Child Scheme to 8.6% from 9.2%
5-year recurring deposit to 7.4% from 8.4%
