Small Savings schemes will continue to be attractive as some of them enjoy income tax benefits and additional interest rate spreads – Press Release from Finance Ministry.
Department of Posts circular regarding Revision of interest rates for Small Savings Schemes for the period from 1st April 2017 to 30th June 2017
Finance Minister Arun Jaitley questioned the high interest rates on savings that translate into higher cost of lending and sluggishness in the economy.
The PPF interest rates at 8.1 per cent remains “reasonably lucrative”, he said, adding nowhere in the world, interest rate is so high. As it is tax free, the actual earning is close to 11-12 per cent, Jaitley said.