Since April last year, interest rates of all small saving schemes have been recalibrated on a quarterly basis. The investment on 5-year Senior Citizens Savings Scheme will yield 8.3%. “On the basis of the decision of the government, interest rates for small savings schemes are to be notified on a quarterly basis,” the ministry said while notifying the rates for second quarter of financial year 2017-18. While announcing the quarterly setting of interest rates, the ministry had said the rates of small saving schemes would be linked to government bond yields. The move is expected to prompt banks to lower the deposit rate in line with the small savings rate as offered by the government.

Source: Mint June 30, 2017 12:11 UTC