The government today announced a steep cut in the interest rates on small savings schemes for the first quarter (April to June) of FY 2020-21. Interest rates on various small savings schemes have been cut by between 70 basis points and 140 basis points (100 basis points = 1 per cent).
For instance, interest rates on the Public Provident Fund (PPF) and Sukanya Samriddhi Yojana have been cut by 0.8% or 80 bps, each. Post office time deposits (of certain tenors) have seen the sharpest cut of 1.4 per cent or 140 bps. After the latest reduction, the PPF will earn 7.1 per cent (down from 7.9 per cent), Sukanya Samriddhi Yojana 7.6 per cent (8.4 per cent), and the time deposits will earn 5.5-6.7 per cent for the April-June quarter.
Here is a look how much each of the small savings schemes will earn for the quarter ending June 30, 2020.
% change in Small Savings schemes interest rates
| Instrument | Interest rate (%) from Jan 1, 2020 | Interest rate (%) from April 1, 2020 | Change(%) |
| Savings deposit | 4 | 4 | 0 |
| 1 year Time Deposit | 6.9 | 5.5 | -1.4 |
| 2 year Time Deposit | 6.9 | 5.5 | -1.4 |
| 3 year Time Deposit | 6.9 | 5.5 | -1.4 |
| 5 year Time Deposit | 7.7 | 6.7 | -1 |
| 5 year Recurring Deposit | 7.2 | 5.8 | -1.4 |
| 5 year Senior Citizen Savings Scheme | 8.6 | 7.4 | -1.2 |
| 5 year Monthly Income Account | 7.6 | 6.6 | -1 |
| 5 year National Savings Certificate | 7.9 | 6.8 | -1.1 |
| Public Provident Fund | 7.9 | 7.1 | -0.8 |
| Kisan Vikas Patra | 7.6 | 6.9 | -0.7 |
| Sukanya Samriddhi Yojana | 8.4 | 7.6 | -0.8 |
🕑 24 Apr, 2025 10:21 PM
Staff Side constitutes panel for drafting memorandum to 8th CPC when formed
🕑 24 Apr, 2025 10:17 PM
8th Pay Commission likely to be set up by mid May
🕑 09 Apr, 2025 10:27 AM
Loan EMIs to get Cheaper as RBI cuts Repo Rate sgain | See the benefit
🕑 04 Apr, 2025 04:49 PM
AICPI-IW declines again, may affect DA hike in July 2025
🕑 02 Apr, 2025 08:27 AM
8th Pay Commission update: Standing Committee of NC-JCM to meet on April 23
🕑 02 Apr, 2025 08:11 AM
Holiday declare for 14th April, 2025 – Birthday of Dr. B.R. Ambedkar
🕑 28 Mar, 2025 04:24 PM
Cabinet approves 2% Dearness Allowance hike from January 2025
🕑 26 Mar, 2025 03:07 PM
Will Govt Delay 8th CPC Implementation? Amendment Sparks Fears
🕑 26 Mar, 2025 11:11 AM
Government Progresses Towards Establishment of Eighth Pay Commission
🕑 04 Apr, 2025 04:46 PM
NPS To UPS Switch from April 1: A Detailed Look at the Option to Switch
🕑 30 Mar, 2025 11:01 AM
8th Pay Commission implementation may get delayed till 2027 – Here’s why
🕑 27 Mar, 2025 10:25 PM
7th CPC wanted a permanent pay panel, end DA revision twice
🕑 27 Mar, 2025 08:43 AM
8th Pay Commission: What Kind Of Salary Hike Can Be Staff Expected?
🕑 20 Mar, 2025 08:24 AM
Why the commuted pension is restored after 15 years, not 12 years
🕑 17 Mar, 2025 08:37 AM
📈 Expected Dearness Allowance (DA) from January 2026 Calculator
🕑 05 Mar, 2025 09:27 PM
8th CPC to reduce number of allowances applicable to employees, pensioners?
