PPF, other small savings schemes see big interest rate cuts
The Public Provident Fund will now fetch 7.1% returns, after an 80 bps cut in its interest rate. It used to earlier give 7.9% returns to its depositors.
The interest rate on National Savings Certificate has been slashed by 110 bps to 6.8%.
The interest rate on Kisan Vikas Patra has been cut by 70 bps to 6.9%, which will mature in 124 months. The interest rate for 5-year Senior Citizens Savings Scheme was slashed by 120 bps to 7.4% as against 8.6% earlier, while that for savings deposits was kept unchanged at 4 per cent a year. The interest on the senior citizens' scheme is paid quarterly.