Investors in small saving schemes like PPF and Kisan Vikas Patra are in for some relief as government has hit the pause button on rate revision for January to March quarter.
The small saving schemes are utilised by investors to build their social security funds or saving for a rainy day.
Since April last year, interest rates of all small saving schemes have been recalibrated on a quarterly basis. For the January-March quarter, these have been kept unchanged compared with the October-December quarter.
A Finance Ministry notification said investments in public provident fund (PPF) scheme will continue to fetch an annual interest rate of 8 percent, the same as 5-year National Savings Certificate.
Kisan Vikas Patra (KVP) investments will continue to yield 7.7 per cent and mature in 112 months.
The one for girl child savings, Sukanya Samriddhi Account Scheme, will continue to give out 8.5 per cent annually while it will be the same as 8.5 per cent for the 5-year Senior Citizens
Savings Scheme. Interest rate on senior citizens savings scheme is paid quarterly.
A savings deposit will fetch 4 per cent interest annually while term deposits of 1-5 years will offer 7-7.8 per cent that will be paid quarterly. The 5-year recurring deposit will continue to earn you 7.3 per cent rate.
“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 said while notifying the interest rates for the fourth quarter of 2016-17 starting from January 1, 2017, and ending on March 31.