Interest rate on PPF, other small savings schemes kept unchanged

Interest rate on PPF, other small savings schemes kept unchanged

The government kept the interest rate on small savings schemes like the Public Provident Fund (PPF) unchanged for the September quarter. Interest rates on small savings schemes like post office deposits, PPF, National Savings Certificate (NSC), Kisan Vikas Patra (KVP) and Senior Citizens Savings Scheme are now linked to government bond yields of similar maturities. A small mark-up is added to the average government bond yield of the previous quarter. However, despite the 10 year bond yields rising above 8% last month, the interest rate on PPF, for example, has been kept unchanged at 7.6%. Many analysts had expected the government to hike small savings rates marginally, given the rise in bond yields. Interest rates for small savings schemes are being notified on a quarterly basis since 1 April, 2016.

Read More at Livemint News date : 3 Jul 2018, Tuesday

©2018 TheNewsClues