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 16th 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:

Instrument

Rate of interest w.e.f. 01.07.2016 to 30.9.2016 Rate of interest w.e.f. 01.10.2016 to 31.12.2016

Compounding frequency

Savings Deposit

4.0

4.0

Annual

1 Year Time Deposit

7.1

7.0

Quarterly

2 Year Time Deposit

7.2

7.1

Quarterly

3 Year Time Deposit

7.4

7.3

Quarterly

5 Year Time Deposit

7.9

7.8

Quarterly

5 Year Recurring Deposit

7.4

7.3

Quarterly

5 Year Senior Citizens Savings Scheme

8.6

8.5

Quarterly and paid

5 year Monthly Income Account Scheme

7.8

7.7

Monthly and paid

5 Year National Savings Certificate

8.1

8.0

Annual

Public Provident Fund Scheme

8.1

8.0

Annual

KisanVikasPatra

7.8 (will mature in 110 months)

7.7 (will mature in 110 months)

Annual

Sukanya Samriddhi Account Scheme

8.6

8.5

Annual

Tag: PPF interest Rate 01-10-2016,KVP interest rate 01-10-2016,NSC interest Rate 01-10-2016,Sukanya Samriddhi account Interest Rate 01-10-2016,NSC Interest rate 01-10-2016

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