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10 things likely to happen in new financial year

As government is moving towards new financial year, read what you may expect in next twelve months

Policy Pulse
Publish Date: Apr 1 2016 12:47PM | Updated Date: Apr 2 2016 1:00PM

10 things likely to happen in new financial year

 As government is moving towards new financial year, read what you may expect in next twelve months:

 
•Interest rate on small savings schemes like Kisan Vikas Patra (KVP), senior citizen deposits and PPF, will be cut by up to 1.3 percent from Friday as government is moving towards quarterly alignment of rates with the market.
 
•Interest rate on PPF will be 8.1 percent for the period April 1 to June 30.
 
•On KVP, interest rate will be down to 7.8 percent from 8.7 percent while senior citizen savings scheme of five years may earn 8.6 percent interest as compared to 9.3 percent.
 
•Sukanya Samriddhi Account will see interest rate of 8.6 percent as against 9.2 percent.
 
•But unlike previous years when interest rates were set for full financial year, from now government will set them every quarter.
 
•Although the interest rate on Post Office savings has been retained at 4 percent, same for term deposits of one to five years has been reduced.
 
•Popular Five-Year National Savings Certificates will earn an interest rate of 8.1 percent from April 1 compared to 8.5 percent, currently.
 
•Five-year monthly Income Account will provide 7.8 percent as opposed to 8.4 percent.
 
•Post Office term deposits of 1 to 3 years command an interest rate of 8.4 percent but from April 1, a one-year time deposit will get 7.1 percent, two-year time deposit will receive 7.2 percent, while three-year time deposit will get interest of 7.4 percent.
 
•Jewellery will be costlier as government imposes 1 percent excise duty on them.