Coronavirus Lockdown: Govt Cuts Interest Rates on Small Savings Schemes
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New Delhi: The government has cut interest rates on small savings schemes by 70 to 140 basis points (bps) for the April-June quarter of the financial year 2020-21, announcing another measure to shore up resources as it manages the implication of a three-week national lockdown against the coronavirus pandemic.
Interest rates on public provident fund the quarter were cut by 80 bps to 7.1% as those for Kisan Vikas Patra were slashed by 70 bps to 6.9%.
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Interest rates were also cut for a senior citizens saving scheme and National Savings Certificate.
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% from the existing 6.9%, down 1.4%, according to a notification by the finance ministry.
Interest rates are paid quarterly, while the five-year term deposit will earn 6.7% from the current rate of 7.7 %.
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