Government Cuts PPF Rate from 8.7% to 8.1%
In a move that will hit the common man, the government cuts PPF rate from 8.7% to 8.1% in a bid to align them closer to market rates.
As a part of its February 16 decision to revise interest rates on small savings every quarter, the interest rate on public provident fund (PPF) scheme will be cut to 8.1 percent for the period April 1 to June 30, from 8.7 percent, at present.
Along with PPF, Kisan Vikas Patra, Sukanya Samridhhi Scheme and Small savings interest rates are also slashed.
- One Year time deposit from April 1 will yield less than a deposit of a similar tenure with a Bank
- Small saving rates are been cut by 40 to 130 basis points
- Bengal state is expected to be the top impacted state as it the leading state in small savings
- These rates will alter every quarter
- Five year Time deposit interest rate cut from 8.5% to 7.9%
- Five year Recurring deposit interest rate cut from 8.4% to 7.4%
- Five year Senior Citizen saving scheme interest rate cut from 8.6% to 9.3%
- Five year Monthly income scheme interest rate cut from 8.4% to 7.8%
- Five year NSC interest rate cut from 8.5% to 8.1%
- PPF rate cut from 8.7% to 8,1%
- KVP rate cut from 8.7% to 7.8%
- Sukanya Samridhhi Scheme from 9.2% to 8.6%
Over Rs 9 lakh crore are currently tied up in small savings schemes. Linking the small savings rates to market rates is likely to help the government save roughly Rs 4,500 crore a year.
Its time common man to think on whether to save there money in government schemes or not, we would think below schemes are still good to invest.
Other than this we generally advice to invest in Mutual Funds and Equity Stocks Market in SIP mode, which are expected to give better returns.(This is only our recommendations, its up to user discrete to thoroughly examine and take decision).
Happy Trading Cheers !!