Post office savings scheme rates to remain fixed for term

The Union government on Wednesday said interest rates on post office savings schemes, except the Public Provident Fund (PPF), would remain fixed throughout the term of the scheme. It clarified that interest rate for such small savings will be declared on April 1 every year and would remain valid till the maturity of the scheme. However, in case of PPF, which is a 15-year scheme, interest rates would not remain fixed for the entire period. The annual interest accruals in the PPF account will depend upon the rate for that particular year, the finance ministry said.


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