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

The rate of interest on PPF has declined from 7.1 per cent earlier to 6.4 per cent now

small savings schemes | Interest Rates | Rate cuts

Sanjay Kumar Singh  |  New Delhi 

The cuts are fairly steep and will hit investors hard, especially in a year when the completely tax-free nature of Employees Provident Fund (EPF) has also changed, especially for high income earners

The government has announced a cut in small savings rates by 50-100 basis points for the first quarter of the new financial year. This is the second time that on have been cut in the past one year. In the April-June quarter of 2020-21, the government had slashed rates of by 70-140 bps. With the latest cut, on these schemes have been reduced by a total of 120-240 bps in one year.



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First Published: Thu, April 01 2021. 01:50 IST