Interest on Small Saving Schemes cut by 10 points, no a hot option anymore

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According to a notification released by finance ministry’s department of economic affairs, interest rates on savings accounts remains unchanged at 4%, while that on deposits for a minimum tenure of one to five years will be 0.1% lower, compounded quarterly.

The 0.1% drop in interest rates also applies on public provident fund scheme and national savings certificate for a five year deposit. Government schemes such as Kisan Vikas Patra and Sukanya Samruddhi Account Scheme will also have the 10 basis points revision in the interest rates.

The revised rates will be applicable for the second quarter of FY 2017-18, ie July 1 to September 30. Here are the revisions: