On the other small savings, including the National Savings Certificate (NSC) and the Public Provident Fund (PPF), the government has reduced the interest rate by 0.10 percent for the July-September quarter. Given the lack of interest rates in the banking sector, the government has taken this step. The Reserve Bank of India has cut its policy rates by a total of 0.75 in three times this year.
Excepting the interest rate on savings account deposits, the government has reduced the interest rate on all other schemes by 0.10%. The interest rate on Savings Deposit Account will remain only 4% per annum. The Finance Ministry has notified the revised interest rates for the second quarter of the financial year 2019-20.
After this deduction, the annual interest rate on PPF and NSC will now be 7.9 percent, which is now 8 percent. At the same time, the interest rate of kinship (KVP) of 113-month maturity will be 7.6 percent. Right now, it is 7.7 percent at 112 months of maturity.
The Sukanya prosperity account will now get 8.4 percent interest, which is currently 8.5 percent. Term deposits of one to three years will now get interested in 6.9 percent and 7.7 percent for a period of five years. This interest rate for recurring deposits will be 7.3 percent instead of 7.2 percent. The interest rate on the Senior Citizens Savings Scheme, which is a five-year term, will now be 8.6 percent, instead of 8.7 percent.
