Small savings interest rate cut by 0.2% points

The Centre on Wednesday cut the interest rates on small savings schemes, including PPF, Kisan Vikas Patra and NSC by 0.2 percentage points or 20 basis points for the January-March 2018.

After the cut, the Public Provident Fund (PPF) and five-year National Savings Certificate (NSC) scheme will fetch an interest of 7.6% from the existing 7.8%.

Similarly, Sukanya Samriddhi scheme will now offer 8.1% in place of the earlier 8.3%.

However, the interest rate on the five-year Senior Citizens Savings Scheme has been kept unchanged at 8.3%.

"The interest rate on one-year time deposits comes down to 6.6% from 6.8% at present, similarly the rate on two-year time deposits is cut to to 6.7%," a finance ministry notification said. Interest rates on small saving schemes have been re-calibrated on a quarterly basis since April last year. However, there was no change in these rates in the October-December quarter.

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