New Delhi | Jagran Business Desk:The government on Thursday slashed interest rates on small savings with savings desposit revised from 4 per cent to 3.5 per cent annually and the PPF rate down from 7.1 per cent to 6.4 per cent annually. The revised rates will come into effect from April 1 and remain effective till June 30, 2021.

"In exercise of the powers conferred by Rule 9(1) of the Government Savings Promotion General Rules, 2018, the rates of interest on various small savings schemes for the Q1 of FY 2021-22 have been revised," the Finance Ministry said in an official notification. 

The 1-year time deposit rate has been revised from 5.5 per cent to 4.4 per cent quarterly. Senior citizen savings schemes rate has also been revised from 7.4 per cent to 6.5 per cent, quarterly and paid.

The girl child savings scheme Sukanya Samriddhi Yojana will offer 6.9 per cent interest rate as againsta rate of 7.5 per cent earlier. 

The Centre had kept interest rates unchanged since the last three quarters. In April-June 2020, it had cut rates by about 70-140 basis points. 

Posted By: Abhinav Gupta