Interest rate on Public Provident Fund cut to 8.1% from 8.7%

Interest rate on Public Provident Fund cut to 8.1% from 8.7%

As a part of its February 16, 2016 decision to revise interest rates on small savings every quarter, the interest rate on Public Provident Fund (PPF) scheme will be cut to 8.1% for the period April 1 to June 30, 2016 from 8.7 %, at present.

Similarly, the interest rate on KVP will be cut to 7.8% from 8.7%, according to a Finance Ministry order

The popular 5 Year National Savings Certificates (NSC) will earn an interest rate of 8.1 per cent from April 1 as against 8.5 per cent, at present.

A  5 year Monthly Income Account will fetch 7.8% as opposed to 8.4% now. Girl-child saving scheme, Sukanya Samriddhi Account will see interest rate of 8.6% as against 9.2%.

Name	Rate of interest w.e.f. April 1, 2015 to March 31, 2016	Rate of interest w.e.f. April 1, 2016 to June 30, 2016	Corss Deposit 2014-15 Rs. Cr
Savings Deposit	4.0%	4.0%
1 Year Time Deposit	8.4%	7.1%
2 Year Time Deposit	8.4%	7.2%
3 Year Time Deposit	8.4%	7.4%
5 Year Time Deposit	8.5%	7.9%
5 Year Recurring Deposit	8.4%	7.4%
5 Year Senior Citizens Savings Scheme (SCSS)	9.3%	8.6%	3370
5 year Monthly Income Plan (MIP)Account Scheme	8.4%	7.8%	21585
5 Year National Savings Certificate (NSC)	8.5%	8.1%	3898
Public Provident Fund (PPF)Scheme	8.7%	8.1%	50658
Kisan Vikas Patra (KVP)	8.7%	7.8% (will mature in 110 months)	2671
Sukanya Samriddhi Account (SSA) Scheme	9.2%	8.6%	522
Post Office savings account	4.00%	4.00%	1,10,312

Senior citizen savings scheme of five-year would earn 8.6% interest compared with 9.3%.

Post Office term deposits of one, two and three years command an interest rate of 8.4% but from April 1, a 1-year Time Deposit will get 7.1%, 2-year Time Deposit will earn 7.2% and 3-Year Time Deposit will attract interest of 7.4%

Five-year time deposit will fetch 7.9% interest in the first quarter as against 8.5% while the same on five-year recurring deposit has been slashed to 7.4% from 8.4%.

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