Rate of Interest on Small Saving Schemes w.e.f. 01-10-2016

Rate of Interest on Small Saving Schemes w.e.f. 01-10-2016

From the year 2012-13, the interest rates on various Small Savings Schemes (SSS) are recalculated and notified in the month of March every year.  These rates are applicable for the next financial year.  This is being done in line with the recommendations of the Shyamala Gopinath Committee to ensure that the interest rates of Small Saving Schemes are market linked.

Accordingly, as done in the previous years, the Rate of Interest on Small Saving Schemes were due for recalculation in March 2016.  As notified on 16^th February, 2016, instead of annual resetting of interest rates for the next financial year, the interest rates from now on will be reset every quarter based on the G-Sec yields of the previous three months. Consequently, the Rate of Interest on Small Saving Schemes were recalculated with reference to the G-Sec yields of equivalent maturity for the months December 2015 to February 2016.  Based on this calculation, the interest rates on various Small Savings Schemes for 2016-17 have been notified.

Ministry of Finance vide Office Memorandum dated 29-09-2016 has revised the Rate of Interest on Small Saving schemes for the Third quarter of financial year 2016-17 as under:

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