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Govt cuts small savings rates from 4% to 3.5% effective April 1; find new rates for other schemes here

The Ministry of Finance on March 31 announced a cut in interest rates in a host of schemes including small savings deposit rate, Senior Citizen Savings Scheme and Public Provident Fund Scheme.

April 01, 2021 / 07:00 AM IST
Finance Minister Nirmala Sitharaman. (File Image)

Finance Minister Nirmala Sitharaman. (File Image)

The Ministry of Finance on March 31 announced a cut in small savings deposit rate from 4 percent to 3.5 percent for the first quarter of the financial year starting April 1, 2021.

One-year time deposit rates are cut to 4.4 percent from 5.5 percent, 2-, 3-, 5- and 5-year recurring deposit rates are cut to 5 percent, 5.1 percent, 5.8 percent and 5.3 percent, from 5.5 percent, 5. 5 percent, 6.7 percent and 5.8 percent, respectively, the ministry said.

Senior Citizen Savings Schemes interest rates are also reduced to 6.5 percent from 7.4 percent.

The ministry further said Public Provident Fund Scheme interest rates are cut to 6.4 percent from the earlier rate of 7.1 percent while Kisan Vikas Patra will see interest rates reducing to 6.2 percent from 6.9 percent earlier.