New Delhi: The Centre on Fridday lowered interest rate by 0.1 per cent on Public Provident Fund (PPF) and small savings deposits like the Kisan Vikas Patra, the Sukanya Samriddhi Account. The new rate would be effective from April 1.
According to Finance Ministry notification, the popular Public Provident Fund or PPF and the Five Year National Savings Certificate will fetch an interest rate of 8 per cent.
For April-June, these have been lowered by 0.1 percent across the board compared to January-March. However, interest on savings deposits has been retained at 4 percent annually.
Since April last year, interest rates of all small saving schemes have been recalibrated on a quarterly basis. For the January-March quarter, these have been kept unchanged compared with the October-December quarter.
A savings deposit will fetch 4 per cent interest annually while term deposits of 1-5 years will offer 7-7.8 per cent that will be paid quarterly.