Zee Media Bureau
New Delhi: The Finance Ministry on Monday approved 8.7 percent interest on Employees Provident Fund (EPF) deposits for 2015-16, labour minister Bandaru Dattatreya said.
It may be recalled that the government had on March 18, slashed interest rates payable on small savings including PPF and Kisan Vikas Patra (KVP) 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 was decided to be cut to 8.1 percent for the period April 1 to June 30, from 8.7 percent, at present.
Similarly, the interest rate on KVP was decided to be cut to 7.8 per cent from 8.7 percent. While the interest rate on Post Office savings was retained at 4 percent, the same for term deposits of one to five years was cut.
The popular five-Year National Savings Certificates will earn an interest rate of 8.1 percent from April 1 as against 8.5 percent.
A five-year Monthly Income Account will fetch 7.8 percent as opposed to 8.4 percent now. Girl-child saving scheme, Sukanya Samriddhi Account will see interest rate of 8.6 percent as against 9.2 percent.
With PTI Inputs