Govt cuts small savings interest rates by 20 bps

The government has reduced the interest rates on small saving schemes, including National Savings Certificates (NSCs), Public Provident Fund (PPF) and Kisan Vikas Patra (KVP), by 0.2 percentage point for the fourth quarter of the fiscal (January-March). The interest rate on the one-year time deposit has been lowered to 6.6 percent as compared to 6.8 percent in the October-December quarter, whereas the 2-year time deposit will now fetch a lower interest rate of 6.7 percent from 6.9 percent in the previous quarter.

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