Interest rates of PPF, Kisan Vikas Patra and other small savings schemes slashed; new rates will be applicable from today (1 April)
People with accounts in Public Provident Fund (PPF), Kisan Vikas Patra (KVP) and National Savings Certificate (NSC) will earn less after the rates were cut by 70-140 basis points (bps).
The government on Tuesday kept the interest rates on small savings schemes, including NSC and PPF, unchanged for the fourth quarter of 2019-20 despite moderating bank deposit rates
Schemes that will fetch lower interest are Kisan Vikas Patra (KVP), Public Providend Fund (PPF), among others
Govt cuts interest rate on NSC, PPF and other small savings schemes by 0.1% for July-September quarter
The government on Friday reduced the interest rate on small savings schemes, including NSC and PPF, by 0.1 percent for the July-September quarter
Interest rates for small savings schemes are notified on a quarterly basis
Govt extends deadline for linking Aadhaar with saving schemes like post office deposits, Kisan Vikas Patra
"It has now been decided to extend the last date for submission of 'Aadhaar' number from 31 December, 2017 to 31 March, 2018," a Finance Ministry notification said.
PPF and NSC will fetch a lower annual rate of 7.6 percent while KVP will yield 7.3 percent and mature in 11 months.
The government slashed interest rates on small savings schemes, including NSC and PPF, by 0.2 percentage point for the January-March period
"Provided that where Aadhaar number has not been assigned, the depositor shall submit proof of application of enrolment for Aadhaar," said a government notification.
Kisan Vikas Patra (KVP) investments will yield 7.5 percent and mature in 115 months
It reinforces the depressing view that the Modi government is unsympathetic to the concerns of the small man though the BJP has been winning successive state elections thanks to his unstinted support
PPF, Kisan Vikas Patra interest rates to fall from 1 April, it's time to consider bolder investment options
The common refrain from small savers is that they do not understand financial instruments beyond fixed deposits
The move is expected to prompt banks to lower the deposit rate in line with the small savings rate as offered by the government
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.
The 8.65% rate is better than most bank FDs which are offering lower rates than this for various tenures
In a scenario when the inflation is falling (CPI inflation is hovering around 5 per cent and the RBI is on course to bring it down even further), the real returns will be positive.
On 1-Year time deposit, interest rate reduced to 7.1% from 8.4%, while on 2-year time deposit slashed to 7.2% from 8.4%
The government has announced a 25 basis points reduction in the interest rates of small savings
The finance ministry said that small saving interest rates are perceived to limit the banking sector's ability to lower deposit rates in response to the monetary policy of the Reserve Bank of India.
Cutting the small savings rate could save the government an estimated $700 million a year