Key Highlights: 

  • Ministry of Finance reduces interest rates for small savings scheme
  • Rates on public provident fund scheme at 7.8% in Q2FY18
  • Rates on Kisan Vikas Patra has reduced to 7.5% 

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Ministry of Finance on Friday reduced interest rates for different small savings schemes for the second quarter of the financial year 2017-18 (Q2FY18) effective from July 01. 

Rates on public provident fund scheme has been decided at 7.8% for July - September 2017 period - down from 7.9% rates in the preceding quarter (April - June 2017 period). 

Similar interest rates are for year national savings certificate. 

At the same time, interest rates for Kisan Vikas Patra has reduced to 7.5% with maturity period of 115 months in Q2FY18 compared to 7.6% with maturity of 113 months in Q1FY18. 

Interest rates on savings deposits have been kept unchanged at 4% annually, however rates are reduced for different tenure period on quarterly basis. 

Here's the list of interest rates that will be charged from July 01 on small savings scheme. 

"On the basis of the decision of the Government, interest rates for small savings schemes are to be notified on quarterly basis," said the ministry.