Interest rates on small savings received a huge cut on Wednesday with the government announcing interest on savings deposit will now be down from 4 per cent to 3.5 per cent annually, while Public Provident Fund or PPF will be down from 7.1 per cent to 6.4 per cent.
Govt cuts interest rates on small savings wef from April 1
Savings deposit revised from 4% to 3.5%,annually.
PPF rate down from 7.1% to 6.4%,annually.
1 yr time deposit revised from 5.5% to 4.4%,quarterly.
Senior citizen savings schemes rate down from 7.4% to 6.5%,quarterly&paid pic.twitter.com/x05Hko3vho— ANI (@ANI) March 31, 2021
This is the second time the government has cut interest rates on small savings schemes in the past one year. In the April-June quarter of 2020-21, the government had slashed rates of small savings schemes by 70-140 bps (100 bps = 1 per cent).