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Will interest rates be reset every quarter on PPF?

The new interest rates of savings scheme like Public Provident Fund (PPF) will be applicable from April 1

I have read recently that interest rates on all small savings instruments have been reduced. Are these rates applicable from April 1 or with immediate effect? Will I be getting 8.7 per cent interest on my Public Provident Fund (PPF) holdings for the current financial year (Apr 1 2015 - Mar 31 2016)? Also, will interest be reset quarterly for PPF/FD, etc? Wll interest be credited in the accountholder's account every quarter or yearly? How is it done now?
- Rajagopal Krishnamoorthy

The new interest rates of savings scheme like Public Provident Fund (PPF) will be applicable from April 1. And the rates would be applicable only until June 30. This means you will get 8.7% on your PPF account for the financial year 2015-16. The new rate of interest 8.1% will be applicable for the first quarter of the next financial year (April-June). This is because the government has decided to reset interest rates on small savings schemes every quarter, in line with yields of government securities. Earlier, the rate of interest was notified every year before the beginning of a new financial year. However, rates may be revised every quarter from the next financial year.

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