Rahul Gandhi attacks Govt. for slashing interest rates on small savings

Congress vice-president Rahul Gandhi on Saturday attacked the ruling dispensation at the Centre for slashing the interest rates on small savings, saying these steps were yet another assault by Prime Minister Narendra Modi-led Government on the middle class.

"Slashing interest rates on small savings - on PPF and KVPs, is yet another assault by the Modi Govt on hard working middle class people," Gandhi said in a tweet.

"This Govt has failed farmers, failed the poor and now it's failing the middle class. Modi ji ppl are seeing through your event management politics!" he added.

The Government yesterday announced sharp cuts in interest earned on a range of state-run savings schemes including the popular public provident fund, the Kisan Vikas Patra (KVP) and senior-citizen deposits.

As a part of its February 16 decision to revise interest rates on small savings every quarter, the interest rate on Public Provident Fund (PPF) scheme will be cut to 8.1 percent for the period April 1 to June 30, from 8.7 percent, at present.

Similarly, the interest rate on KVP will be cut to 7.8 percent from 8.7 percent, according to a Finance Ministry order.

While the interest rate on Post Office savings has been retained at four percent, the same for term deposits of one to five years has been cut.

A five-year Monthly Income Account will fetch 7.8 percent as opposed to 8.4 percent now. Girl-child saving scheme, Sukanya Samriddhi Account will see interest rate of 8.6 percent as against 9.2 percent.

Senior citizen savings scheme of five-year would earn 8.6 per cent interest compared with 9.3 per cent.

"On the basis of the decisions of the government, interest rates for small savings schemes are to be notified on quarterly basis," the order said announcing the rates for the first quarter of fiscal 2016-17.

Post Office term deposits of one, two and three years command an interest rate of 8.4 per cent but from April 1, a 1-year Time Deposit will get 7.1 per cent, 2-year Time Deposit will earn 7.2 per cent and 3-Year Time Deposit will attract interest of 7.4 per cent.