Ministry of Finance on Wednesday 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.
Ministry of Finance said, 1-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 4.4 percent, 5.0 percent, 5.1 percent and 5.8 percent, from 5.5 percent 6.7 percent and 5.8 percent, respectively.
Senior Citizen Savings Schemes interest rates are cut 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 7.1 percent earlier while Kisan Vikas Patra will see interest rates reducing to 6.2 percent from 6.9 percent earlier.
Interest rates for Sukanya Samriddhi Account Scheme has been slashed to 6.9 percent from 7.6 percent.