Govt Increase PF on Small Savings By 0.4 Per Cent for Quarter 3

Interest rates for small saving are announced in quarterly basis. Central Government has hiked the interest rate for PPF, NSC, sukanya samriddhi yojana and many other small savings account by up to 0.4 per cent for the Q3 October- December. PF A retirement plan for the private and public sectors, enacted by the Employees Provident Fund (EPF) Act of 1991, intended to help employees save a portion of their salary in the event of sickness, unemployment, retirement & disability

A rate which is charged or paid for the use of money. An interest rate is often expressed as an annual percentage of the principal. It is calculated by dividing the amount of interest by the amount of principal. Interest rates often change as a result of inflation and Federal Reserve Board policies.

On the basis of the decision of the Government, interest rates for small savings schemes are notified on quarterly basis since 1st October 2018. Accordingly, the rates of interest on various small savings schemes for the third quarter of financial year 2018-19 staring 1st October, 2018 shall be increased by up to 0.4 per cent annually for the small savings account on the basis of interest compounding. This has approval of Finance Minister.

For the Five year Recurring Deposit and Senior Citizen Savings Scheme, interest rate has been increased from 6.9 to 7.3 and 8.3 to 8.7 per-cent respectively. Public Provident Fund (PPF) and National Savings Certificate (NSC) interest rate will be 8 per cent annually as compared to existing 7.6 per cent, while Kisan Vikas Patra (KVP) will yield 7.7 per cent annually as compared to existing 7.3 per cent and mature in 112 months.

Rate of Interest for one to three year time Deposit has been increased by 0.3, quarterly.  Sukanya Samriddhi account higher interest of 8.5 per cent rate, 0.4 per cent more than the previous rate. However, interest on savings deposits has been retained at 4 per cent, annually.

The undersigned is directed to refer to this department’s OM of even number dated 16th February 2016, vide which the various decisions taken by the government regarding interests fixation  for small saving schemes were communicated to all concerned

Rudresh Dubey

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