Govt cuts interest rates on small savings schemes effective from April 1

For the first time interest rate on savings deposits has been reduced by 0.5% to 3.5% from the existing 4% annually

The government on Wednesday cut interest rates on small savings schemes, including NSC and PPF, by up to 1.1 per cent for the first quarter of 2021-22 in line with falling fixed deposit rates of banks.

Interest rate on Public Provident Fund (PPF) has been reduced by 0.7 per cent to 6.4 per cent while National Savings Certificate (NSC) will now earn 0.9 per cent less at 5.9 per cent.

Interest rates for small savings schemes are notified on a quarterly basis.

The rates of interest on various small savings schemes for the first quarter of the financial year 2021-22 starting from April