Saturday, 2 April 2016

Interest rate on PPF will be cut by up to 1.3 per cent from today

Interest rate on small savings schemes, including PPF, Kisan Vikas Patra (KVP) and senior citizen deposits, will be cut by up to 1.3 % from today as the government moves towards quarterly alignment of rates with the market.
Interest rate on Public Provident Fund (PPF) scheme will be 8.1 % for the period April 1 to June 30, down from 8.7 %. 

  • On KVP, it will be reduced to 7.8 % from 8.7 % while senior citizen savings scheme of five years would earn 8.6 % interest compared to 9.3 %. 
  • Girl-child saving scheme, Sukanya Samriddhi Account will see interest rate of 8.6 % as against 9.2 %, according to a Finance Ministry order.
  • However, unlike previous years when interest rates were set for the full year, the government will from now on set them every quarter, based on the previous 3-month yields on Government-Securities or G-Sec.
  • While the interest rate on Post Office savings has been retained at 4 %, the same for term deposits of one to five years has been cut.
  • The popular Five-Year National Savings Certificates will earn an interest rate of 8.1 % from April 1 as against 8.5 %, at present. A five-year Monthly Income Account will fetch 7.8 % as opposed to 8.4 %.
  • Post Office term deposits of one, two and three years command an interest rate of 8.4 % but from April 1, a one-year time deposit will get 7.1 %, two-year time deposit will earn 7.2 % and 3-year time deposit will attract interest of 7.4 %.
  • Five-year time deposit will fetch 7.9 % interest in the first quarter as against 8.5 % while the same on five-year recurring deposit has been slashed to 7.4 % from 8.4 %.
  • Kisan Vikas Patra or KVP that currently provides for doubling of principal in 100 months (8 years and 4 months) will now be doubled in 110 months (9 years and 2 months) after the interest rate revision.
  • The government had stated that the cut in small savings interest rate would help the economy move to 'a lower overall interest rate regime eventually and thereby help all, particularly low-income and salaried classes'.
  • The government has also permitted premature closure of PPF accounts 'in genuine cases', like serious ailment or higher education of children.
  • 'This shall be permitted with a penalty of 1 % reduction in interest payable on the whole deposit and only for the accounts having completed five years from the date of opening,' the finance ministry had said.
  • The interest rate for every quarter would be decided on the 15th of the preceding month. Interest rate for July-September quarter will be announced on June 15.

About

Parag Patil is a technical analyst and trading system designer with stock excel programmer. I hope the articles and live chart of nse future and mcx on this Website will be as helpful and profitable to you . I try to update and post new articles tips everyday. My motto is to encourage the traders, so that they should able to understand the technique views behind the moment of stocks. I have deeply analyzed with many technical indicator with parameter and added to my amibroker afl. And even taken backtest report which is never being implemented. Any of the analyst expect me. Seeing all this you may understand that my views is more technical than commercial. If you are profited by my views I fill happy.

0 comments:

Dear Friends,
Sorry to say that you are suffered for the chart initially available, now they are restored and you can very well see the chart on money99.org similar to money99.in.
And all of you are intimated that we are going to develop more and more in money99.org to facilitate your dreamy demands.

Latest updates tips : Follow

© Copyright 2015 Money99. Designed by Parag Patil