2016 Interest Rates on PPF, Kisan Vikas Patra, NSC, MIS, Senior citizen scheme, Deposits
The government on Friday reduced the interest rates on small savings schemes like Public Provident Fund (PPF), Senior Citizen Savings Scheme etc. The small savings schemes interest rates have been reduced to align them to market rates as announced by the Finance Ministry. Highest reduction in the case of one-year time deposit has been done of 130 basis points.
The new interest rates are effective starting April 1, 2016. Interest rate payable on 1 year time deposit are slashed to 7.1 per cent from current 8.4 per cent.
Presently, Public Provident Fund (PPF) scheme Interest rate is 8.7 percent that will be cut down to 8.1 per cent from April 1 to June 30. Kisan Vikas Patra interest rate is at 8.7 % will come down to 7.8 per cent. Interest rates for Girl child scheme, Sukanya Samriddhi Account Scheme, from the present 9.2 per cent is reduced to 8.6 per cent fom April 1.
Interest rate on five-year Senior Citizen Savings Scheme is down from 9.3 per cent to 8.6 per cent. Investing in Five-Year National Savings Certificates scheme will get you an interest rate of 8.1 per cent from the current 8.5 per cent. A five-year Monthly Income Account will get you 7.8 per cent as compared to 8.4 per cent now.
Post Office savings interest rate is at 4 per cent but for term deposits of one to five years it has been reduced. Two-year time deposit will be down from 8.4 per cent to 7.2 per cent, three-year time deposit will get you 7.4 per cent from 8.4 per cent, five-year time deposit will come to 7.9 per cent as interest rate from the present 8.5 per cent. Five-year recurring deposit will be slashed to 7.4 per cent from 8.4 per cent.
Interest rates on PPF, Kisan Vikas Patra, NSC, MIS, Senior citizen scheme, Deposits will be revised every quarter, the new rates, are applicable from April 1 to June 30.