Short term savings schemes to fetch lower returns from April

Zee Media Bureau

New Delhi: The interest rates on small savings schemes like NSC and some post office schemes with maturity up to five years are set to fall from April onwards.

Also, the rate on these short- tenure schemes is likely to be set quarterly, unlike the currant practice of setting interest rates annually.

However, the rates for senior citizen schemes and girl child scheme like Sukanya Samridhhi Scheme and longer-tenure schemes such as PPF will not see a major impact,

The Secretary, Economic Affairs, Shaktikanta Das said on Thursday, "The decisions have been taken and executive order and notification would be issued in a day or two.

“Broadly, the underlying philosophy of small savings rate changes is to make the rate more frequently market-aligned, make it as closely market-aligned as possible," added Das.