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Government cuts interest rates on small savings schemes like PPF and NSC by up to 1.4% for April-June quarter

With the reduction, term deposits of 1-3 years will now fetch an interest rate of 5.5 per cent from the existing 6.9 per cent

By PTI
  • Published 31.03.20, 9:59 PM
  • Updated 31.03.20, 9:59 PM
  • a min read
  •  
The government on Tuesday slashed interest rates on small savings schemes, including National Savings Certificate and Public Provident Fund, by up to 1.4 per cent for the first quarter of 2020-21, in line with moderation in bank deposit rates. (Image used for representational purpose) Shutterstock

The government on Tuesday slashed interest rates on small savings schemes, including National Savings Certificate and Public Provident Fund, by up to 1.4 per cent for the first quarter of 2020-21, in line with moderation in bank deposit rates.

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

With the reduction, term deposits of 1-3 years will now fetch an interest rate of 5.5 per cent from the existing 6.9 per cent, down 1.4 per cent, according to a notification by the finance ministry.

Interest rates are paid quarterly, while the five-year term deposit will earn 6.7 per cent from the current rate of 7.7 per cent.