01/04/2021
*Govt cuts interest rate on PPF, NSC, Kisan Vikas Patra and Sukanya Samriddhi Accounts from April 1*
Ministry of Finance on Wednesday announced a cut in small savings deposit rate from 4 percent to 3.5 percent for the first quarter of the financial year starting April 1, 2021.
Ministry of Finance said, 1-year time deposit rates are cut to 4.4 percent from 5.5 percent, 2-, 3-, 5- and 5-year recurring deposit rates are cut to 5 percent, 5.1 percent, 5.8 percent and 5.3 percent, from 5.5 percent, 5. 5 percent, 6.7 percent and 5.8 percent, respectively.
Senior Citizen Savings Schemes interest rates are cut to 6.5 percent from 7.4 percent.
The ministry further said, Public Provident Fund Scheme interest rates are cut to 6.4 percent from 7.1 percent earlier while Kisan Vikas Patra will see interest rates reducing to 6.2 percent from 6.9 percent earlier.
Interest rates for Sukanya Samriddhi Account Scheme has been slashed to 6.9 percent from 7.6 percent.
These interest rate cuts are in-line with overall interest rate movement in financial system. When bank lending deposit rates fall sharply, small savings rates have to follow to align with the larger trend.
