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New Delhi: The government today kept interest rates of public provident fund (PPF) and other small savings schemes unchanged for the first quarter of the financial year 2019-20, starting from 1 April, 2019 to 30 June, 2019. This was tweeted by the Ministry of Finance. Interest rates of small savings schemes are currently revised on a quarterly basis. “Rates of interest on various small savings schemes for the first quarter of the financial year 2019-20 starting from 1st April, 2019 and ending on 30th June, 2019 will remain unchanged and will continue to be same as notified for the fourth quarter of the financial year 2018-19," the finance ministry said in a tweet.
The interest rate on the PPF and the 5-year National Savings Certificate remains unchanged at 8% while the 5-year Monthly Income Scheme fetches 7.7%.
Interest rate for the five-year Senior Citizens Savings Scheme has been retained at 8.7%. The interest on the senior citizens' scheme is paid quarterly. Interest on savings deposits has been retained at 4% annually.
The government had hiked interest rates on various small savings schemes, including Public Provident Fund (PPF), Kisan Vikas Patra (KVP), National Savings Certificate, Monthly Income Scheme, Senior Citizen Savings Scheme (SCSS) and Sukanya Samriddhi Scheme (SSS), by 40 basis points (bps) in the October-December quarter, making them attractive for investors who want to invest in safe products.
The government had revised the interest rate on post office time deposit schemes of select maturities for the January-March quarter.
The Finance Ministry had hiked the interest rate on the 1-year post office time deposit to 7% (compounding quarterly) but the rate on the 3-year deposit was lowered to 7%.
Latest interest rate of small savings schemes
The interest rates on 2-year and 5-year post office deposits have been kept unchanged at 7% and 7.8% respectively. Similarly, the interest rate on the popular 5-year post office recurring deposit has been kept steady at 7.3%.