The government slashed interest rates on small savings schemes by 10 basis points on Friday.
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:
The department of economic affairs’ notification comes after the government decision to notify interest rates on a quarterly basis.